A former hedge fund portfolio manager was arrested Tuesday in what prosecutors are calling perhaps the most lucrative insider trading scheme of all time – an arrangement to obtain confidential, advance results of tests on an experimental Alzheimer’s drug that helped investment firms make more than $276 million.
Mathew Martoma, 38, was charged in U.S. District Court in Manhattan with using the information to advise a hedge fund owner to buy shares in the companies developing the drug, then later to dump those investments and place financial bets against the companies when the tests returned disappointing results. Martoma was released on $5 million bail.
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