Federal documents released by the Department of Justice and the Securities Exchange Commission refer to a political consultant who allegedly provided material information to the manager of New York-based Visium Asset Management in May 2013.
Sources familiar with the probe said the political consultant under investigation is David Blaszczak, according to the report.
Determining whether Mr. Blaszczak broke any insider-trading laws may be complicated. Government insider trading rules do not draw a sharp distinction between market-moving tips based on thorough research and insider information obtained illegally.
Mr. Blaszczak has been accused of offering private-sector job offers in exchange for market information, according to the article. If the allegations are viewed as quid pro quo by prosecutors, Mr. Blaszczak could be indicted for insider trading, according to the report.
In a statement to the WSJ in 2014, Mr. Blaszczak said he “only use[s] public information in preparing all of [his] reports” and that he would “vigorously fight any false allegation.”
Visium, which has not been charged with any wrongdoing, declined to comment on the investigation, according to the report.
A CMS spokesperson said employees regularly undergo training on how to prevent the disclosure of sensitive information and are taught to answer questions posed by the public using only publically available information, according to the report.
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