The informant recorded more than 125 conversations with colleagues with hedge fund firm Visium Asset Management LP and others, according to court documents. It’s thought that the informant spent more than two years cooperating with the U.S. Securities and Exchange Commission and FBI, during which time he collected more than 200 hours of secretly recorded conversations.
The case started out as an investigation into portfolio managers at the $8 billion firm after suspicions were raised about the inflated value of holdings in its credit portfolio. But when allegations surfaced that the firm was acting on insider tips from a former official at the U.S. Food and Drug Administration, the investigation was expanded.
In total, four senior executives were charged after the investigation. Two pleaded guilty and Sanjay Valvani, the most senior executive charged, committed suicide. Stefan Lumiere, an assistant portfolio manager in the credit fund, is the sole remaining defendant in the case.
The recently released court filing, submitted by Lumiere’s defence lawyers, seeks an order compelling the government to identify co-conspirators in the case. It also asks a judge to supress evidence discovered in a search of Lumiere’s apartment.