Biotech insider trading case heats up with ex-SAC manager's pleas
The U.S. government's major case involving insider trading on biotech stocks continued to unfold this week, with a former portfolio manager from SAC Capital pleading not guilty to conspiracy and fraud charges.
As Bloomberg reports, Mathew Martoma faces as much as 25 years of jail time in the case, which alleges that he got insider info on a major Alzheimer's program for bapineuzumab that benefited his firm to the tune of $276 million. And U.S. prosecutors say they've got a pile of evidence to prove their case.
"There is an ongoing investigation into this and related matters," Assistant U.S. Attorney Arlo Devlin-Brown told the U.S. District judge on the case, as quoted by the news service. "It is entirely likely the government will receive new and additional documents."
The government has stepped up its efforts to crack down on insider trading in biotech, which presents all kinds of opportunities for people with inside knowledge on studies and R&D programs to break the rules.
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