Sat, Apr 18, 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. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  2. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  3. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

  4. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  5. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

 

banner