Dr. Yves Benhamou of France was arrested in Boston on Sunday. He is charged with giving money managers private information about a drug that was being tested.
Benhamou worked for a company that was testing Albuferon, a drug for treating hepatitis (a liver disease). He was also being paid by fund managers and investors. They knew that, if people heard anything bad about Albuferon, the price of the company shares would go down. So they paid Benhamou to tell them whenever something went wrong with the tests.
For example, one person died while testing the drug. Right away, Benhamou told the people who were paying him. They were able to sell their shares before this got into the news and the value went down.
Janice Fedarcyk of the FBI says Benhamou's information was valuable to the managers and investors, "but passing it along wasn't fair, and it wasn't legal."