India link in fresh US insider trading scam

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Press Trust of India: Nov 28 2012, 01:47 IST

A prominent Indian-origin hedge fund portfolio manager has been charged with participating in one of the “most lucrative” insider trading schemes ever in the US.

Mathew Martoma, 38, has been charged with using material, non-public information that he received from a doctor on the clinical trial of an Alzheimer’s drug to make profits and avoid losses for his hedge fund for an amount totalling approximately $276 million.

Martoma, who was arrested last week from his home in Boca Raton, Florida, was released on Monday on a $5 million bail after a brief hearing at the Manhattan federal court here. He did not enter any plea and the judge set the next hearing for December 26.

The US Securities and Exchange Commission has also filed a civil insider trading case against him.

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Mr.

MP Singh | 28-Nov-2012Reply | Forward

This is where Indians fail in USA. They are intelligent, smart, innovative and hard working. But at the same time, they behave as if they are in India, where everything works and there is an escape from any dragnet. Rajaratnam from Sri Lanka, Rajat Gupta from India are the two top executives, among some others, prosecuted for insider trading. These people already earn million of dollars a year. Why then they have excessive and illegitimate greed that destroys them?