November 20, 2012 in Nation/World

Expert sees a gathering storm for top fund manager

Larry Neumeister Associated Press
 
Tags:arrestsbusinessCorporate crimeCorporate newscrimeFinancial servicesGeneral newsIndustriesLaw and order

NEW YORK (AP) — A financial law expert says prosecutors may be setting their sights higher than the former hedge fund portfolio manager they say helped orchestrate one of the most lucrative insider trading deals ever.

Mathew Martoma was accused Tuesday of obtaining secret results of tests on an experimental drug that netted more than $270 million for his Connecticut firm and others.

His former employer CR Intrinsic Investors LLC is an affiliate of SAC Capital Advisors. The latter firm is owned by wealthy hedge fund manager Steven A. Cohen.

John Sylvia is co-chairman of the securities litigation practice at the Mintz Levin law firm in Boston. He says there’s little doubt where the government’s sights are.

He says “I don’t think it takes Sherlock Holmes to figure it out.”

Martoma’s attorney says he expects his client to be exonerated.

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