Hedge Fund Insider Trader was a Dunce
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This week's head-shaker involves former CR Intrinsic employee, Mathew Martoma, who was charged with orchestrated what may be the most lucrative insider trading scheme ever, which netted the firm an illicit gain of $276 million, accorded to the SEC.
The scheme involved pharmaceutical companies Elan and Wyeth, and Martoma and his firm benefited from tips given by a Neurologist named Sidney Gilman, who for his part appears less than innocent. As a result of the ill-gotten gains, Martoma received a bonus of nearly $10 million.
An FBI report noted that Martoma was later accused by a boss of being a "one trick pony", suggesting that without insider information he was pretty much worthless as a trader. In 2010 it was recommended that Martoma be fired, and he left the firm later that year.
The schemers departure just two years after netting CR Intrinsic hundreds of millions of dollars begs the question, how incompetent of a trader was this guy?
Reports say Dr. Gilman thought of Martoma as a pupil. Apparently, he wasn't much of one, because without the rogue scientist at his side it looks like he had no clue what he was doing. Martoma's bonus for 2009 and 2010 was zilch.
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The scheme involved pharmaceutical companies Elan and Wyeth, and Martoma and his firm benefited from tips given by a Neurologist named Sidney Gilman, who for his part appears less than innocent. As a result of the ill-gotten gains, Martoma received a bonus of nearly $10 million.
An FBI report noted that Martoma was later accused by a boss of being a "one trick pony", suggesting that without insider information he was pretty much worthless as a trader. In 2010 it was recommended that Martoma be fired, and he left the firm later that year.
The schemers departure just two years after netting CR Intrinsic hundreds of millions of dollars begs the question, how incompetent of a trader was this guy?
Reports say Dr. Gilman thought of Martoma as a pupil. Apparently, he wasn't much of one, because without the rogue scientist at his side it looks like he had no clue what he was doing. Martoma's bonus for 2009 and 2010 was zilch.
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