Consultant held in scheme to trade search for a profit

NEW YORK, May 25, (AP): A Washington consultant, three hedge fund workers and a government employee were blamed Wednesday by federal prosecutors for an insider trading scheme that converted government secrets into hedge fund profits.

Four were arrested on conspiracy, securities fraud and other charges contained in an indictment unsealed in Manhattan federal court while it was revealed that a fifth person has already pleaded guilty and is cooperating.

Acting US Attorney Joon H. Kim said the defendants used “highly sensitive and confidential information” from the Centers for Medicare & Medicaid Services, part of the US Department of Health and Human Services, to enable three hedge fund workers to make over $3.5 million illegally for their company from 2012 through 2014. The Securities and Exchange Commission said the profits reached $3.9 million.