Inside Job

Feds Best Massive Insider Trading Scheme

Federal prosecutors charged Mathew Martoma, a former portfolio manager for the hedge fund SAC Capital Advisors LP, on Tuesday with what federal prosecutors called “the most lucrative insider-trading scheme ever.” An SEC complaint alleged that Martoma netted $220 million in gains and dodged $56 million of losses by trading with nonpublic inside information ahead of a planned negative announcement on two companies’ joint venture in developing an Alzheimer’s drug. The SEC also sued a neurologist, alleging that he tipped off Martoma.