Mon, Sep 15, 2014
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. Investing - Big hedge funds show interest in Alibaba, Maglan joins other hedge funds in rush to Argentinian assets[more]

    Big hedge funds show interest in Alibaba From Hereisthecity.com: …Three other major hedge fund investors who have shown interest in the IPO are Dan Loeb of Third Point, David Tepper of Appaloosa Management and Dan Benton of Andor Capital Management. All three were among the roughly 800 p

  2. Socially responsible investments provide higher yield[more]

    Komfie Manalo, Opalesque Asia: A study by New Amsterdam Partners showed that asset managers with high ESG (environmental, social and governance) ratings provide higher gains with their portfolios compared to managers with low ESG ratings. In a study entitled

  3. Rothschild sees ‘new monetary world’ and recommends hedges[more]

    From Valuewalk.com: Rothschild Wealth Management is concerned about complacency and somewhat befuddled about the potential for stimulus in the Eurozone given the economic indicators. In their September “Market Perspective” report, Rothschild observed that while the risks in the Ukraine and Syria are

  4. SEC charges Minnesota hedge fund manager with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has brought charges against Minneapolis-based hedge fund manager, Steven R. Markusen for bilking investors out of fees and portfolio pumping. According to the complaint, the management fees earned by Archer Advisors LLC were shrinking due to the funds’ w

  5. …And Finally – Immature[more]

    From Newsoftheweird.com: Princeton University professor John Mulvey, 67 (who teaches financial engineering applications), was charged in July with stealing 21 yard signs around the town of Princeton -- signs for a computer repair business owned by a man with whom he was feuding. Nathan McCoy,