44 year old Wall Street investor Sanjay Valvani worked as a hedge fund manager for Visium Asset Management. Last month, he was arrested by federal agents on charges of insider trading related to his illegally gaining information about a Food and Drug Administration approved drug, and using the information to profit by investing in a pharmaceuticals company. Following his arrest and indictment, he apparently committed suicide, and now his 6 bedroom home in the Hamptons is on sale for $11.9 million.
Mr. Valvani had gained access to a secret report from the FDA announcing their approval of an anti-blood clotting drug called enoxaparin. Using this ill-gotten news he made investments in Momenta Pharmaceuticals, who were going to produce the drug, as well as the company Sanofi. He ran this illegal scheme for at least 5 years from 2005 to 2011, netting himself a total of $25 million.
It was hoped by authorities that his case would bring to light the illegal doings of Wall Street investors who use insider information from Washington regarding drug approvals by the Food and Drug Administration to line their pockets. His lawyer, Barry Berke, protested his innocence however, saying, “It will be shown that the prosecution of Mr. Valvani is yet another example of this United States Attorney’s office stretching the facts and law to try to transform entirely innocent trading decisions into a crime.” Mr. Valvani was charged with five counts that included securities fraud, wire fraud, and conspiracy but pled not guilty. He was allowed free on a bond of $5 million.
The company that Sanjay Valvani worked for, Visium Asset Management, was founded by Jacob Gottlieb. Mr. Valvani had helped Mr. Gotlieb build the company, and remained a partner. Currently it is a firm worth $8 billion with a top clientele invested in pension funds.
As would be expected of someone with such an opulent lifestyle, albeit done so with money from his insider trading scheme, Mr. Valvani’s lived in an enormous home (some would say mansion) on 493 Parsonage Lane in Sagaponack, in the Hamptons, among many others who work in finance. The home reportedly contains a theater, a gym, a wine cellar, and a gated driveway. All told it measures 8,000 square feet and sits on 1.7 acres which contain a pool and a tennis court.
Guests would be able to enjoy an eat-in chef’s kitchen as well as take meals in a formal dining room. The guest suite itself takes up an entire wing of the building, and has its own private balcony. Occupants would enjoy a master bedroom suite with a fireplace, two walk-in closets, a high, vaulted ceiling and a shower with a bench enclosed in glass.
The bathroom alone has stone floors, a soaking tub and a vanity with two sinks, also covered in stone. Anyone entering the house would have a choice of either the front or rear staircase. Or they could take the elevator.
Sanjay Valvani came from Brooklyn and was originally seen as an up-and-comer in the world of Wall Street investments. He graduated from Duke University’s Fuqua School of Business in 2001. In 2012 he donated $250,000 to his alma mater in the form of scholarships. It isn’t known if these are now endangered by his criminal activities.