Skip to main content

News

Target Of Medicare Insider Trading Case Boasted He Was Unstoppable 'Beast'

By Kaiser Health News  
   May 30, 2017

Federal prosecutors have announced an indictment against David Blaszczak and three co-defendants, including an executive-level Medicare employee, for allegedly turning confidential government information into windfall profits on Wall Street.

This article first appeared May 30, 2017 on Kaiser Health News.

By Christina Jewett and Melissa Bailey

In his prime, consultant David Blaszczak bragged that he made millions for his hedge-fund clients when he predicted important Medicare funding changes.

“Warren Buffett can eat it,” Blaszczak wrote in one email in 2013, referencing the legendary stock trader.

He boasted in that same year to a finance executive: “I am a beast that cannot be stopped.”

Stopped he was on Wednesday, when federal prosecutors announced an indictment against Blaszczak and three co-defendants, including an executive-level Medicare employee, for allegedly turning confidential government information into windfall profits on Wall Street. The Securities and Exchange Commission also has alleged securities law violations, seeking to recoup $3.9 million in “ill-gotten gains.”

The case targets the narrow but lucrative world of “political intelligence,” a web of consulting firms like one that Blaszczak co-founded in 2014. Such firms traffic in crumbs of information coaxed out of federal employees, or simply good hunches, and make money by landing contracts with Wall Street firms.

Kaiser Health News is a national health policy news service that is part of the nonpartisan Henry J. Kaiser Family Foundation.


Get the latest on healthcare leadership in your inbox.