Former SAC fund manager gets charged with insider trading
Ex-SAC Capital Advisors LP fund manager Mathew Martoma was charged with insider trading. This was so as Martomas allegedly received tips from a physician regarding an Alzheimer's drug. Prosecutors accused the former manager about getting inside information from a second doctor.
The second source in the alleged insider trading was only identified as "Doctor-2". This was according to US Attorney Preet Bharra's office yesterday through a filed revised indictment. The filing stated that the second doctor paid visits with Martoma through a financial services institution that provided networking services to SAC Capital.
The state claimed that Martoma used the information from two physicians who were involved in the trial of bapizeuzumab (bapi). The tip was said to help the hedge fund to generate USD376 million from trading shares of Wyeth and Elan Corp. The US government said that this had been the biggest insider trading against an individual in US history.