The Norman Transcript

Nation/World

March 16, 2013

Fund pays $600M, settles insider trading charges

NORMAN — Hedge fund CR Intrinsic Investors will pay more than $600 million in what federal regulators are calling the largest insider trading settlement ever.

The Securities and Exchange Commission charged the firm with insider trading in 2012, alleging that one of its portfolio managers illegally obtained confidential details about an Alzheimer’s drug trial from a doctor before the final results went public and made trades from that information.

The SEC said Friday that the fund agreed to settle the charges and the parties neither admit nor deny the charges.

“The historic monetary sanctions against CR Intrinsic and its affiliates are a sharp warning that the SEC will hold hedge fund advisory firms and their funds accountable when employees break the law to benefit the firm,” George S. Canellos, acting director of the SEC’s Division of Enforcement, said in a statement.

The SEC said in its complaint that Sidney Gillman, a doctor who moonlighted as a medical consultant, tipped CR Intrinsic portfolio manager Mathew Martoma with safety data and eventually negative results in the trial of the drug made by drug firms Elan Corp. and Wyeth two weeks before they were made public in 2008. Martoma and CR Intrinsic then caused several hedge funds to sell more than $960 million in Elan and Wyeth securities in a little more than a week.

The commission amended its complaint Friday to add S.A.C. Capital Advisors and four hedge funds managed by CR Intrinsic and S.A.C. Capital as defendants, saying they each received ill-gotten gains from the scheme.

The settlement is subject to the approval of a U.S. District Court judge. It does not settle charges against Martoma, whose case is still in litigation

It was one of multiple settlements reached Friday by the SEC. The SEC also settled charges against Sigma Capital Management for $14 million. Sigma allegedly profited illegally from early information about the earnings of two technology companies.

Text Only | Photo Reprints
Nation/World
  • Judge asks pointed questions in gay marriage case

    DENVER — A judge in Colorado who will play a pivotal role deciding whether gays should be allowed to wed in the United States asked pointed questions Thursday about whether Oklahoma can legally ban the unions....

    April 18, 2014

  • Sudan: 12 die after mob attacks UN base

    JUBA, South Sudan — An angry mob of South Sudanese youths attacked a U.N. base on Thursday to harm members of an ethnic minority sheltering inside. Peacekeepers were forced to open fire, amid rampaging violence that killed at least 12 ...

    April 18, 2014

  • Astronomers spot most Earth-like planet yet

    LOS ANGELES — Astronomers have discovered what they say is the most Earth-like planet yet detected — a distant, rocky world that’s similar in size to our own and exists in the Goldilocks zone where it’s not too hot and not too cold for ...

    April 18, 2014

  • Creek, old purse solve mystery

    ELK POINT, S.D. — Cheryl Miller and Pamella Jackson had planned to celebrate the end of the 1971 school year by gathering with classmates at a quarry along a gravel road....

    April 18, 2014

  • Chaotic scene described on sinking ferry

    MOKPO, South Korea — There was chaos and confusion on the bridge of a sinking ferry, with the captain first trying to stabilize the listing vessel before ordering its evacuation, a crewman said Thursday....

    April 18, 2014

  • Tiny power plants hold promise for nuclear energy

    PARIS — Small underground nuclear power plants that could be cheaper to build than their behemoth counterparts may herald the future for an energy industry under intense scrutiny since the Fukushima disaster, the incoming head of the ...

    April 18, 2014

  • Organizers confident of safe race

    BOSTON — The arrest of a man with a rice cooker in his backpack near the Boston Marathon finish line led police to step up patrols Wednesday, while organizers sought to assure the city and runners of a safe race next week....

    April 17, 2014

  • Ukraine bares teeth against eastern uprising

    KRAMATORSK, Ukraine — In the first Ukrainian military action against a pro-Russian uprising in the east, government forces repelled an attack Tuesday by about 30 gunmen at an airport, beginning what the president called an “anti-terrorist ...

    April 16, 2014

  • Supremacist faces murder charges

    OVERLAND PARK, Kan. — The white supremacist charged in shootings that left three people dead at two Jewish community sites in suburban Kansas City made his first court appearance Tuesday....

    April 16, 2014

  • Iran cuts nuclear weapons ability

    VIENNA — The United Nations will release a report this week certifying that Iran’s ability to make a nuclear bomb has been greatly reduced because it has diluted half of its material that can be turned most quickly into weapons-grade ...

    April 16, 2014

Video
Facebook