Ex-hedge fund trader charged in $276M insider ploy

Read More: http://newsdoors.blogspot.com/2012/11/ex-hedge-fund-trader-charged-in-276m.html

NEW YORK (AP) - A former hedge fund portfolio manager was arrested Tuesday in what prosecutors called perhaps the most lucrative insider trading scheme of all time - an arrangement to obtain secret, advance results of tests on an experimental Alzheimer's drug that netted more than $276 million for his fund and others.

The case also led authorities to investigate the activities of one of the nation's wealthiest hedge fund managers, billionaire Steven A. Cohen.

The portfolio manager, Mathew Martoma, was accused in U.S. District Court in Manhattan of using the information to advise other investment professionals to buy shares in the companies developing the drug, then  later to dump those investments and place financial bets against the companies when the tests returned disappointing results.

Read More: http://newsdoors.blogspot.com/2012/11/ex-hedge-fund-trader-charged-in-276m.html