24/7 Newsfeed

Put Reason 24/7 on Your Site


Follow Reason 24/7 on Twitter and via RSS

SAC Capital Manager Arrested for Insider Trading

US officials have linked Steven Cohen, founder of SAC Capital, one of Wall Street’s most powerful hedge funds, to an insider-trading scheme that prosecutors called the most lucrative case of its kind.

US prosecutors charged Mathew Martoma, a former portfolio manager at CR Intrinsic, a SAC Capital fund, with trading shares in two pharmaceuticals companies after obtaining secret information about a clinical drug trial. US authorities alleged that Mr Martoma recommended trading shares in Elan and Wyeth to the “hedge fund owner”, who people familiar with the matter confirm was Mr Cohen.

Source: Financial Times. Read full article. (link)

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.