Sun, Oct 4, 2015
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

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. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  2. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  3. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  4. Comment - Cash and hedge funds are king[more]

    From For years we've argued that, given heightened uncertainty, a preferred portfolio posture is to barbell between cash allocations, which provide valuation optionality and mitigate unanticipated shocks, and long-short equities hedge funds that reduce "beta", or index risks, while leaving

  5. Europe - Russia has been gold for hedge funds this year[more]

    From Judging by the headlines, Russia may look like a nation in turmoil. Investors, though, don't seem to mind. In fact, for hedge funds, Russia has been one of the biggest and best stories of 2015, turning in the only positive performance among all emerging market strategies and crushing