SAC facing largest insider trading case ever for $276 million windfall on confidential test results from Alzheimer’s disease drug

Authorities are saying that SAC Capital is likely to face civil fraud charges based on allegations of a massive insider trading scheme in which ΠMathew Martoma, a former SAC portfolio manager got advanced confidential findings on an Alzheimers drug trial from a medical school professor. SAC bet against the share prices of pharma companies Wyeth and Elan enabling more than $276 million to be made illegally for the fund and others. The government also said in court papers that Martoma caused other investment advisers to buy shares in the drug companies and then ditched their investments before the publica became aware of the poor results of the trials. Martoma worked with CR Intrinsic Investors an affiliate of SAC Capital Investors