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U.S. SEC probes CMS employees in insider-trading case -report

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The U.S. Securities and Exchange Commission is investigating whether employees at the Centers for Medicare and Medicaid Services (CMS) leaked information to traders, the Wall Street Journal reported, citing people familiar with the investigation. Authorities have interviewed nearly a dozen CMS officials and subpoenaed policy research firms, Wall Street traders and government officials as part of the probe, the newspaper reported, citing unnamed sources. The SEC is pursuing three overlapping insider-trading investigations involving CMS, the report said, adding that one of the cases involves the Federal Bureau of Investigation. In one probe, the SEC is examining whether any agency officials tipped off policy research firm Marwood Group LLC about CMS's review of Dendreon Corp's prostate cancer treatment called Provenge. The second is focused on a former CMS employee, David Blaszczak, who has made many accurate predictions about Medicare payments for medical products, the paper

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