DAVID BLASZCZAK, a political intelligence consultant, and CHRISTOPHER WORRALL, a CMS employee, are among five accused of a massive insider trading scheme that spanned from 2012 to 2014. They’re charged with obtaining confidential government information and using it to execute profitable trades at Investment Adviser-A, reaping over $3.5 million in illegal profits.
Their alleged collaborator, THEODORE HUBER, and ROBERT OLAN, both healthcare-focused hedge fund analysts, were also arrested for their roles in the scheme. JORDAN FOGEL, a former partner at Investment Adviser-A, has pled guilty and is cooperating with authorities.
BLASZCZAK stands accused of securing CMS information through his friend, WORRALL, who breached his duties as an employee. He then fed this data to HUBER, OLAN, and FOGEL before market-moving announcements at Investment Adviser-A. The scheme also involved BLASZCZAK providing CMS information about cuts in reimbursement rates to Christopher Plaford of another hedge fund.
The suspects will face arraignment later today. Acting U.S. Attorney Joon H. Kim emphasized the gravity of trading on secret government information, calling it a serious threat to market integrity and governmental institutions.
Additionally, the SEC has filed civil charges against BLASZCZAK, WORRALL, HUBER, and FOGEL, intensifying the legal scrutiny surrounding this case.
Related Federal Cases
- Emergent BioSolutions Ex-CEO Robert Kramer Accused of $10M Insider Trading Scam · New York
- St. Margaret’s Center Hit with $1.3M Fine for Resident Neglect · New York
- Bausch and Lannett Hit with $17.85M Fine for Generic Drug Price Fixing · New York
- CapOne Hit with $425M Settlement for Cheating Savers · New York
- NY-Presbyterian Hudson Valley Hospital Hit with $616K Fine for Illegal Kickback Scheme · New York
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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