Preet Bharara, Defense Lawyer Not Yet Seeing Eye To Eye On How Visium PM Generated $25 Million Profit

He said/he said.
By United States Department of Justice ( [Public domain], via Wikimedia Commons

Photo: US DOJ , via Wikimedia Commons

According to Preet Bharara and the rest of the gang at the U.S. Attorney's office for the Southern District of New York, Visium Asset Management portfolio manager Sanjay Valvani scored himself a tidy little profit of $25 million by trading on tips he obtained from an ex-FDA official about a buncha pending drug approval. (Also playing for Team Bharara are a former colleague of Valvani's and the FDA official in question, both of whom are cooperating.) According to Valvani's lawyer? Homeboy earned that money by performing hardcore due diligence specifically and being generally being a kick-ass investment professional.

"Sanjay Valvani is an innocent man whose investment decisions were always based on rigorous and entirely appropriate research and analysis," his lawyer Barry Berke said in a statement. Berke also accused Bharara of "stretching the facts and law to try to transform entirely innocent trading decisions into a crime."

U.S. charges hedge fund manager Valvani with insider trading [Reuters]


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: