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Ex-SAC Manager Charged in Insider Trading Case

Friday, 21 Dec 2012 | 1:50 PM ET
Mathew Martoma Expected in Court Today
Former hedge fund portfolio manager Matthew Martoma is due in court any minute on charges of conspiracy to commit securities fraud, with CNBC's Bertha Coombs & Judge Richard Holwell, Holwell Shuster & Goldberg.

A federal grand jury in New York returned an indictment Friday against a former SAC Capital portfolio manager previously charged in what prosecutors have called the "most lucrative" insider trading scheme ever.

Mathew Martoma, 38, of Boca Raton, Florida, was indicted on three counts of conspiracy to commit securities fraud and securities fraud related to trades made in Elan Corp and Wyeth based on tips prosecutors say he received from a doctor.

The trades allegedly helped Steven A. Cohen's SAC Capital hedge fund avoid losses and reap profits totaling $276 million in the summer of 2008. The indictment followed an earlier criminal complaint federal prosecutors filed Nov. 20.

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