Sanjay Valvani, a money manager at Visium Asset Management, was arrested and charged with insider trading, according to court papers in New York.
Valvani, who was put on paid leave in April, is accused of trading on tips about the drug enoxaparin, according to papers.
Jonathan Gasthalter, a spokesman for Visium, didn’t immediately respond to requests for comment.
Jacob Gottlieb, a medical school graduate who later turned to a career in finance, founded Visium in 2005 and expanded it beyond its roots in trading equities tied to the health-care industry. Gottlieb told investors in a March letter that the firm is under investigation by the Department of Justice and U.S. Securities and Exchange Commission.
In a related case, the SEC filed a lawsuit against Christopher Plaford.
To contact the reporter on this story: Bob Van Voris in federal court in Manhattan at rvanvoris@bloomberg.net.
To contact the editor responsible for this story: David Glovin at dglovin@bloomberg.net.
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