Wed, Apr 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SEC brings charges, FBI makes arrest in most lucrative insider trading scheme 'ever,’ Steven Cohen implicated

Wednesday, November 21, 2012

amb
Mathew Martoma
Bailey McCann, Opalesque New York:

Today the Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) brought charges in what the enforcement agencies are calling the most lucrative insider trading scandal ever. The SEC brought civil charges against Mathew Martoma of Stamford, Connecticut-based hedge fund advisory firm CR Intrinsic Investors. CR Intrinsic Investors is part of the federation of hedge fund managers affiliated with Steven Cohen's SAC Capital. Cohen, while not directly named in the SEC complaint was referenced as 'Portfolio Manager A’ and is as yet, only implicated in the matter not directly charged with criminal wrongdoing as Martoma is. FBI agents arrested Mr. Martoma today in Florida.

According to the complaint, Martoma hired a doctor, Sidney Gilman, through what is commonly known as an expert network. These networks typically amount to subject matter experts that advise hedge fund managers or other investors on potential investment opportunities. Working with expert networks in this way is legal under US law.

Where things go bad for Mr. Martoma is how far he took this relationship. In the charges, the SEC says he became a 'friend and pupil,’ of the doctor and through that relationship extracted material and non-public information about an Alzheimer’s drug trial. This information was then used as part of a tradin......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Opalesque Roundtable: Emerging managers should avoid chasing 'institutional unicorns'[more]

    Bailey McCann, Opalesque New York: For managers looking to raise a new fund after the crisis, marketing efforts will need to be significantly different, according to delegates at the recent Opalesque Texas Roundtable. "Most of the smaller managers come to the whole fund-raising and marketing

  3. Cohen's private investments deliver strong 7.5% gain in Q1[more]

    From Reuters.com: Billionaire Steven A. Cohen's investments gained 7.5 percent in the first three months of 2015, according to a person familiar with the numbers, helping the former hedge fund manager extend his string of market-beating returns. Cohen's Point72 Asset Management, which invests

  4. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

  5. Opalesque Exclusive: Cyber security and hedge funds: increased awareness, Part One[more]

    Benedicte Gravrand, Opalesque Geneva: If you look at the recent cybersecurity news from Bloomberg, hackers are frightening the people: they steal photos and threaten to expose them, they can break into ATMs, they ha

 

banner