{"id":32676,"date":"2012-11-26T08:09:39","date_gmt":"2012-11-26T13:09:39","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=32676"},"modified":"2012-11-26T08:40:45","modified_gmt":"2012-11-26T13:40:45","slug":"historic-hedge-fund-scheme-uncovered","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2012\/historic-hedge-fund-scheme-uncovered.html","title":{"rendered":"&#8220;Historic&#8221; Hedge Fund Scheme Uncovered"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/10\/sec_building.gi_.top_.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-25666\" title=\"sec_building.gi.top\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/10\/sec_building.gi_.top_-300x208.jpg\" alt=\"\" width=\"300\" height=\"208\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/10\/sec_building.gi_.top_-300x208.jpg 300w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/10\/sec_building.gi_.top_.jpg 495w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>New York (HedgeCo.Net) &#8211; The FBI has unsealed charges involving insider trading during an alzheimer\u2019s disease drug trial \u00a0that is proving to be the most\u00a0lucrative hedge fund insider-trading case ever prosecuted.<\/p>\n<p>Mathew Martoma, a former portfolio manager for a division of a group of affiliated hedge funds,\u00a0allegedly used inside information that he received from a doctor who served as an adviser to Elan Corporation PLC on the clinical trial of an Alzheimer\u2019s Disease drug to make profits and avoid losses for the hedge fund in an amount totaling approximately $276 million. Martoma and his then-employer, SAC Capital Advisors, liquidated holdings in two companies after receiving insider information, prosecutors allege.<\/p>\n<p>\u201cYet another privileged hedge fund professional stands accused of insider trading.\u201d\u00a0Manhattan U.S. Attorney Preet Bharara said, \u201cAs alleged, by cultivating and corrupting a doctor with access to secret drug data, Mathew Martoma and his hedge fund benefited from what might be the most lucrative inside tip of all time. As Martoma allegedly got sneak peeks at drug data, he first recommended that the hedge fund build up a massive position in Elan and Wyeth stock and then caused the fund to shed those shares after getting a secret look at the unexpectedly bad results of a clinical drug trial. And so, overnight, Martoma went from bull to bear. As a result of the blatant corruption of both the drug research and securities markets alleged, the hedge fund made profits and avoided losses of a staggering $276 million, and Martoma himself walked away with a $9 million bonus for his efforts.\u201d<\/p>\n<p>Martoma was arrested at his home in Boca Raton, Florida, and made an initial appearance in federal court in West Palm Beach, Florida. He will appear in Manhattan federal court on Monday, November 26, 2012, at 10:00 a.m.<\/p>\n<p>Alex Akesson <br \/>Editor for <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; The FBI has unsealed charges involving insider trading during an alzheimer\u2019s disease drug trial \u00a0that is proving to be the most\u00a0lucrative hedge fund insider-trading case ever prosecuted. Mathew Martoma, a former portfolio manager for a division [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-32676","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=32676"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32676\/revisions"}],"predecessor-version":[{"id":32682,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32676\/revisions\/32682"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=32676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=32676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=32676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}