NEW YORK (AP) — A federal grand jury in New York has indicted a former hedge-fund portfolio manager for securities fraud in connection with what prosecutors say could be the most lucrative insider-trading scheme to date.
Mathew Martoma was indicted Friday on three counts of securities fraud and conspiracy to commit securities fraud.
Martoma, of Boca Raton, Fla., was arrested last month in connection with the scheme that allegedly involved an arrangement between 2006 and 2008 to obtain secret, advance results of tests on an experimental Alzheimer's drug. The scheme allegedly helped SAC Capital Advisors gain profits and avoid losses to totaling $276 million.
Stamford, Conn.-based SAC is owned by Steven A. Cohen, one of the world's richest men.