Former Hedge Fund Manager Charged With Insider Trading

trading volumeU.S. prosecutors have charged a former manager at Steven A. Cohen’s hedge fund with insider trading.

In a complaint filed in federal district court in New York, the government claims that Mathew Martoma provided the hedge fund with insider information regarding drug trials at Elan (NYSE:ELN) and Wyeth. Martoma is one of several former employees at SAC Capital Advisors to have been charged with insider trading, Bloomberg notes.

The hedge fund used the information from Martoma to sell shares of the two companies before word of disappointing drug trial results became public, making $276 million in gains. The government has not claimed that Cohen knew he was acting on illicit information, but noted that he had discussed the stock trades with Martoma.

Neither Cohen or SAC Capital Advisors have been charged. An attorney representing Martoma denied the government’s allegations.

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