Hedge Fund Manager Is Sentenced to 5 Years

Mr. Skowron earned more than $32 million at FrontPoint, according to the government. Even after paying his roughly $8 million in penalties, Mr. Skowron has a net worth in excess of $15 million, the government said.

There are still numerous claims against Mr. Skowron. Five parties filed victim impact statement with court and asked for restitution from Mr. Skowrom, with the largest request coming from Morgan Stanley.

The bank said it was owed $37.4 million after suffering "very substantial damages" from Mr. Skowron's crimes. It said that has spent more than $4.4 million on legal fees related to the case, and took a $116 million write-down on its failed FrontPoint investment.

In perhaps the case's most unusual twist, one of the victims was Galleon Group, the hedge fund headed by Raj Rajaratnam, the convicted hedge fund manager who last month received an 11-year prison term, the longest insider-trading sentence in United States history.