PIO facing insider trading charges found dead

Sanjay Valvani, the Visium Asset Management partner charged with insider trading last week, was found dead in an apparent suicide at his Brooklyn home. He was 44.

New York City police were called to his home on Monday evening, where they found a knife near his body and a suicide note in which he professed his innocence, according to the AP. Valvani died after an apparent, self-inflicted slash to the neck, a spokeswoman said.

Valvani is survived by his wife, Harjot Sandhu, a former first-grade teacher and reading specialist, and his two daughters. Jacob Gottlieb, Visium's founder, said in a statement on Tuesday, "We mourn the tragic loss of Sanjay, a devoted father, husband and friend."

The stunning development follows Valvani's arrest last week on insider trading charges, which led to Visium's decision to liquidate four of its hedge funds. Valvani, a top lieutenant of Gottlieb's, reaped more than $32 million from trades in drug companies using secret tips, according to prosecutors. Valvani's lawyer, Barry Berke, said his client was innocent.

At Visium, Valvani oversaw a portfolio of specialitypharmaceutical stocks. His performance was so good that rivals at other hedge funds questioned Visium employees about Valvani's confidence in his trades, a former colleague said. Valvani managed as much as $2 billion, including borrowed money, before he was put on leave in April.

A native of Kalamazoo, Michigan, and child of Indian immigrants, Valvani worked at Visium since its 2005 inception. He started out as a sell-side associate at Salomon Smith Barney and joined Gottlieb as an analyst at Balyasny Asset Management in 2003. Two years later, Gottlieb spun out his healthcare strategy, bringing along a team of 20 investment professionals including Valvani, to start Visium.

Valvani died as an innocenman — because he passed away before his case was resolved, the court is required to dismiss the charges against him. Those who knew Valvani described him as super-smart, an adoring father, an enthusiastic philanthropist and a friendly neighbour. Federal prosecutors described him as an insider trader who deserved as much as 65 years in prison.

"This is a horrible tragedy that is difficult to comprehend," Valvani's lawyer Berke said. "Valvani was a loving father, husband, son and brother and committed friend, colleague and mentor. We hope for the sake of his family and his memory that it will not be forgotten that the charges were only unproven accusations and he had always maintained his innocence."