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Precy Dumlao, Opalesque Asia: - The insider trading case against former health-care portfolio manager at CR Intrinsic Investors, Mathew Martoma, a unit of Steve Cohen’s $14bn hedge fund firm SAC Capital Advisors, has shed a serious doubt on Cohen himself as he and his firm are further dragged into what the U.S. Federal authorities describe as the "most lucrative" securities fraud in history.

A report by Bloomberg claims that this is the sixth time that an employee of Cohen has been implicated in an insider trading scheme done while at his employ, but this is the first time authorities have evidence that Cohen had talked with a defendant about the stocks involved in the complaint.

Thomas Gorman, a partner in Dorsey & Whitney’s litigation and enforcement practice group based in Washington, told Bloomberg, "This is a significant step forward for the government in their tracing of evidence that seems to be leading to SAC. It also raises the question of compliance procedures and how well they are policed at SAC."

The Federal Bureau of Investigation (FBI) arrested Martoma last week in Florida for allegedly getting inside information on a clinical trial of an Alzheimer's drug; this information allowed SAC Capital to earn at least $276m in profits. He was also being implicated for allegedly using inside tips to avert losse......................

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