National News

Nov 20, 2012 10:57 AM by AP

NY feds claim most lucrative insider trading case

NEW YORK (AP) - Federal authorities in New York have charged a former hedge fund portfolio manager with what they call the most lucrative insider trading scheme in U. S. history, with benefits reaching more than a quarter of a billion dollars.

The charges in federal court in Manhattan were announced Tuesday against Mathew Martoma. The FBI charged him with conspiracy to commit securities fraud, saying he carried out his scheme from 2006 through July 2008 while he worked for CR Intrinsic Investors LLC.

The FBI says the insider trading scheme developed after Martoma met a doctor in Manhattan involved in an Alzheimer's disease drug trial in October 2006. The FBI says in a criminal complaint that he later obtained confidential information related to the final results of a drug trial.

Martoma's attorney did not immediately return a message requesting comment.

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