US: Ex-fund manager got help from multiple doctors

AP News
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Posted: Aug 22, 2013 6:04 PM
NEW YORK (AP) — A former hedge fund portfolio manager arrested on charges he carried out a record-setting insider trading scheme has been accused in New York of pursuing an inside edge on a clinical trial from over 20 doctors.A rewritten indictment unveiled Thursday against Mathew Martoma says he sought illegal information from doctors from 2006 to 2008 while working at SAC Capital Advisors. The Boca Raton, Fla., man has pleaded not guilty to conspiracy and securities fraud. He is free on bail.Martoma was arrested in November on charges that he persuaded a medical professor to leak secret data from an Alzheimer's disease trial. Prosecutors say the inside information enabled other investment professionals at the hedge fund founded by Steven A. Cohen to earn a quarter-billion dollars illegally.Martoma's lawyer declined comment.