CIA Monitoring Technology Will Allow SAC To Catch Insider Traders Before Preet Bharara Does

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Hoping to boost surveillance in the wake of numerous insider-trading investigations that ultimately ended its life as a public hedge fund, SAC Capital has hired a Silicon Valley data miner that has done work for the Central Intelligence Agency and the Federal Bureau of Investigation in order to keep closer tabs on its own employees. In a memo issued to employees Wednesday afternoon, SAC President Tom Conheeney announced the hiring of Palantir Technologies, a closely held Palo Alto, Calif., company that specializes in crunching data for large institutions...Of course, that surveillance is already underway. As part of a pilot program first discussed nine months ago, Conheeney wrote, Palantir was able to "embed" with SAC's compliance team and run a temporary monitoring project. That pilot was a "success," the firm president added, leading to the data miner's hiring. [NetNet]

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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: