A one-time “King of Political Intelligence” got a year in prison for insider trading -- a sentence that sends a warning to Washington consultants that profiting from government secrets can be as risky as trading on confidential company information.
David Blaszczak, a Washington consultant who was convicted of giving two hedge funds advance word on changes to Medicare reimbursement rates, was also ordered to forfeit $727,500 and to spend another 12 months under house arrest. A federal jury in May found that he provided the clients with tips he picked up from ex-colleagues still in the government.
“Blaszczak was unapologetic ...