Ex-SAC Manager Martoma Charged in Insider Scheme
Nov. 20 (Bloomberg) -- Manhattan U.S. Attorney Preet Bharara, Robert Khuzami, director of the Securities and Exchange Commission's Division of Enforcement and other officials speak at a news conference in New York to review charges against Mathew Martoma, a former portfolio manager for Steven A. Cohen’s SAC Capital Advisors LP, for an insider-trading scheme that netted as much as $276 million for the hedge fund.
Prosecutors charged Martoma with trading on insider tips about clinical trials of bapineuzumab, a drug to treat Alzheimer’s diesease. Martoma, 38, is accused of advising Cohen to sell shares of Wyeth LLC and Elan Corp. before bad news about the drug’s prospects was announced. (Source: Bloomberg)