Tuesday, November 20, 2012

The SAC Fund Manager And The Largest Insider Trading Case In History




Former hedge fund manager Mathew Martoma will be charged today in what is "believed to be the most lucrative insider trading scheme ever," according to a notice from the Securities and Exchange Commission.

Martoma was employed at a portfolio manager at CR Intrinsic Investors in Stamford, which is a unit of SAC Capital Advisors, the SEC and the Department of Justice's complaints said. 
The complaints allege that the insider trading scheme involved information in pharmaceutical companies, Elan Corporation and Wyeth, between the summer 2006 and mid-July 2008. 

The DOJ's complaint alleges that Martoma got access to negative confidential Alzheimer's disease drug trial information, which caused the hedge fund to dump its 10.5 million share position in Elan and 7 million shares in Wyeth.  The hedge fund then shorted those stocks…..

P.S. In spite of the SAC Capital connection, observant Weird readers will note that somehow this man's name has not been mentioned....yet.  Stay tuned sports fans.........


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