(Corrects to say that Worrall is current, not former, federal
By Brendan Pierson
NEW YORK May 24 A Washington, D.C., political
consultant, a federal employee and three others have been
charged with using confidential information from within a U.S.
health agency to engage in an insider trading scheme.
Federal prosecutors on Wednesday unsealed an indictment in
Manhattan federal court against political consultant David
Blaszczak, founder of Precipio Health Strategies; U.S.
Department of Health and Human Services employee Christopher
Worrall; and Rob Olan and Ted Huber, listed as employees on the
website of healthcare hedge fund Deerfield Management.
Jordan Fogel, a former Deerfield employee who was also
charged, pleaded guilty on Friday, according to a spokesman for
acting U.S. Attorney Joon Kim in Manhattan.
Lawyers for the defendants could not immediately be reached
for comment. Deerfield, which is not charged, also could not be
Prosecutors said that from 2012 to 2014, Olan, Huber and
Fogel schemed to get confidential information from the
Department of Health and Human Services from Blaszczak, who
previously worked there. Blaszczak in turn got the information
from his former colleague and "close friend" Worrall.
Worrall works in the agency's Centers for Medicare and
Medicaid Services division, which oversees government health
insurance programs, according to the court papers. The
confidential information included advance notice about
regulations of radiation cancer treatment and dialysis, allowing
Deerfield to trade in healthcare companies affected by the
The U.S. Securities and Exchange Commission said on
Wednesday that it had filed a separate complaint against
Blaszczak, Worrall, Huber and Fogel over the alleged scheme.
(Reporting by Brendan Pierson in New York; Editing by Lisa Von
Ahn and James Dalgleish)