Skip to main content

SAC Trader Trial Will Include Guest Appearance By Hedge Fund's CFO

  • Author:
  • Updated:

The government gave hints Thursday of its strategy in the criminal case against SAC Capital Advisors LP portfolio manager Michael Steinberg, disclosing that its first witness will be the hedge-fund firm's chief financial officer, Daniel Berkowitz. The trial, which starts next week in federal court in Manhattan, could provide the most detailed look yet at the inner workings of the giant hedge fund. It comes on the heels of SAC's landmark $1.8 billion settlement with the government over insider-trading allegations. [WSJ]


Preet Bharara: University Of Michigan Doctor Financially Compensated For Leaking Confidential Drug Trial Data To Former SAC Trader Just An Innocent Pawn In Big Bad Hedge Fund's Game

As you may have heard, earlier today, Mathew Martoma, a former portfolio manager in SAC Capital's CR Intrinsic unit, was charged with allegedly running “the most lucrative insider trading scheme ever," netting $276 million for the fund. He did so based on information that was given to him by Sid Gilman, a University of Michigan neurologist and chair of a "safety-monitoring committee that oversaw a clinical trial by Wyeth LLC and Elan Corp.  into whether the drug bapineuzumab, or bapi, was safe for patients with mild-to-moderate Alzheimer’s disease." Over an 18-month period, Gilman and Martoma met 42 times, in addition to emailing and chatting over the phone. For example: