Tue, Sep 16, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Update: Martoma insider trading case further drags down hedge funder Steve Cohen

Monday, November 26, 2012

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......................

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. Investors looking at other sources for hedge fund-like returns[more]

    Komfie Manalo, Opalesque Asia: Investors who are always on the lookout for higher gains are looking at alternative sources of income, particularly exchange-traded fund industry that generates hedge fund-like returns, according to

  3. 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

  4. …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,

  5. Investors move capital out of Scotland ahead of referendum[more]

    Benedicte Gravrand, Opalesque Geneva: Ahead of Scotland’s independence referendum on September 18, asset managers, investors and pension savers are moving billions of pounds out of the country,