WESTPORT, Conn. -- A hedge fund partner and analyst from Westport was one of four people arrested in New York on Wednesday in connection with an insider trading scheme based on confidential government Medicaid and Medicare information.
Theodore Huber, 55, of Westport was arrested on a number of charges, including conspiracy to convert property of the United States, to commit securities fraud and to defraud the United States; wire fraud; securities fraud; and conversion of property of the United States. The arrest was announced by Joon H. Kim, the Acting United States Attorney for the Southern District of New York, along with the FBI and the U.S. Department of Health and Human Services.
According to court documents, Huber was the partner and analyst of a healthcare-focused hedge fund in New York, along with 46-year-old Robert Olan of Rumson, N.J. They were both arrested as part of the scheme, as was 41-year-old David Blaszczak of South Carolina and 39-year-old Christopher Worrall of Maryland.
Kim said that Blaszczak was a political intelligence consultant who obtained confidential and nonpublic information from employees of the Centers for Medicare and Medicaid Services. Worrall is an employee of CMS who provided Blaszczak with the information. Blaszczak then provided this information to Huber and Olan, who recommended trades based on the information, according to court documents.
The hedge fund is believed to have reaped more than $3.5 million in profits as a result of the scheme, according to Kim.
Another partner of the hedge fund, 33-year-old Jordan Fogel of Sands Point, N.Y., pleaded guilty last week to charges including conspiracy to commit securities fraud and to defraud the United States. He is cooperating with investigators in the case against the other four.
If convicted, the defendants could potentially face several decades in prison, as all charges carry a maximum of between five and 25 years in prison.