(November 23) What is apparently the largest insider-trading case in history has been filed by the Manhattan office of U.S.
Attorney Preet Bahrara against a former portfolio manager for Steven A. Cohen’s well-known SAC Capital Advisors LP. The criminal complaint charges Mathew Martoma of trading on inside information of disappointing Alzheimer’s drug trials, and coming away with $276 million of profits and avoided losses. The case was referred to state and federal prosecutors in 2008 by the New York Stock Exchange Division of Market Regulation on the analysis of suspicious trading patterns. That organization is now part of FINRA. The contents of the complaint suggest that the high-profile Cohen may also be implicated.
(Bloomberg News at www.bloomberg.com)