A manager at a one-time $8 billion hedge fund has been reportedly found guilty of securities fraud

A one-time portfolio manager at a New York hedge fund that shuttered last year amid an insider trading scandalhas been found guilty of federal securities fraud, according to a Bloomberg News report.Stefan Lumiere was found guilty of inflating bond prices in Visium Asset Management's credit fund, Bloomberg reported.Here's Bloomberg:"Prosecutors said Lumiere solicited sham quotes from brokers to justify inflated valuations on distressed-debt holdings. Jurors rejected his claim that he thought the prices he was assigning were legitimate and done at the behest of his boss, who pleaded guilty and testified against him."A lawyer for Lumiere declined to comment and a spokesman for Visiumdidn't immediately respond to a request.Lumiere is the ex-brother in law of Visium's founder, Jake Gottlieb, a physician who founded the firm, which became known forinvesting in healthcare stocks.Sanjay Valvani, astar fund manager overseeing the firm's healthcare fund, committed suicide last year days after he was accused of insider trading. Gottlieb hasn't been accused of any wrongdoing.SEE ALSO:Behind the life and death of a star money manager accused of insider tradingJoin the conversation about this storyNOW WATCH: Bernie Madoff explains in rare interview from prison how he rationalized his crimes
Click here to read full news..