D.C. Consultant Found Guilty of Stealing U.S. Medicare Secrets

(Bloomberg) -- A Manhattan jury convicted a Washington consultant of stealing government secrets as part of a scheme to pass insider tips to hedge funds, in a first-of-its-kind verdict involving the capital’s "political intelligence" industry.

David Blaszczak, who consulted for hedge funds after leaving the Centers for Medicare and Medicaid Services, was found guilty of conspiracy, wire fraud and theft of government secrets. Prosecutors accused him of providing his clients with details of confidential plans to cut reimbursement rates.

Also convicted were Robert Olan and Theodore Huber, two partners at Deerfield Management, and Christopher Worrall, Blaszczak’s friend and source inside CMS. The four men were acquitted of various counts, including securities fraud.

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