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LI man charged in insider trading case involving Medicaid policies

A Long Island man was named Wednesday as a co-conspirator and cooperating witness in a $3.7 million insider trading case accusing officials at a New York investment firm of trading on confidential tips from inside the agency that sets Medicaid and Medicare policies.

Jordan Fogel, 33, of Sands Point, was charged with two other partners in the investment firm, Robert Olan and Theodore Huber, as well as David Blaszczak, a Washington “political intelligence” consultant, and Christopher Worrall of the federal Centers for Medicare & Medicaid Services.

Fogel pleaded guilty Friday, and is helping the government, officials said. The $8 billion investment firm was not named by prosecutors, but Huber and Olan are listed as current partners on the website of Deerfield Management, a health investing firm, and Fogel is a past partner.

The government said Worrall worked as a senior adviser in the director’s office of the federal center and had “broad access” to confidential information about reimbursement policies affecting stock values of health device and service firms, the investing specialties of the Deerfield partners.

Blaszczak, a former center employee who consulted for Washington firms that gave advice on government actions, had discussed lucrative private sector opportunities with Worrall and got tips from him about regulatory changes in areas like radiation oncology and kidney dialysis, the government said.

At Deerfield, according to an email, Fogel allegedly described his connection to the Washington consultant as the “Fogel-Blaszczak money printing machine.”

“Just like trading on material nonpublic corporate information can be a federal crime, so can trading based on secret government information, as alleged to have happened here,” said Manhattan Acting U.S. Attorney Joon Kim.

A spokesman for Deerfield, in a statement, said, “Deerfield is committed to maintaining a strict culture of compliance and the highest ethical standards. We are cooperating fully with the government’s investigation.”

Fogel’s lawyer, Marc Mukasey, said in a statement, “Jordan is looking forward to resolving this matter and moving on.” The others were named in an 18-count indictment charging securities fraud, wire fraud and other offenses.

Huber, 55, of Westport, Connecticut, and Olan, 46, of Rumson, New Jersey, were released after appearances in Manhattan federal court. Blaszczak, 41, of Isle of Pines, South Carolina, and Worrall, 39, of Linthicum Heights, Maryland, were scheduled to appear in their home districts. In a separate case, the Securities and Exchange Commission filed suit Wednesday against Fogel, Huber, Worrall and Blaszczak.

Lawyers for Blaszczak, Worrall and Olan either declined to comment or did not respond to calls. Barry Berke, a lawyer for Huber, said his client made investment decisions based on research and “did absolutely nothing wrong. ”

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