Fri, Apr 18, 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

Banner
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: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably