Reuters blog archive
By Reynolds Holding
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
It’s almost criminal that the snitch will walk in a probe involving SAC Capital. Mathew Martoma, an ex-trader at Steve Cohen’s $14 billion hedge fund firm, faces possible jail time for alleged insider trading. But the doctor accused of giving him secret data doesn’t - he won’t be charged after agreeing to help prosecutors. Flipping suspects to land bigger game is standard. Going easy on serious wrongdoing shouldn’t be.
Martoma’s alleged crimes stand out even among the scores of recent insider-trading prosecutions. He’s accused of illegally helping SAC reap $276 million in profits made and losses avoided, a record amount for such cases. Enforcers say his recommended trades came after consultations with Cohen. Though the hedge fund titan isn’t accused of wrongdoing, it’s the first time he has been linked to suspicious transactions.
Almost lost in the hoopla, however, is the snitch at the heart of the alleged scheme. Sidney Gilman, a neurology professor, consulted with Elan and Wyeth on an Alzheimer’s drug the two developed, chaired the committee overseeing the drug’s safety and sold investors his expertise through a research firm. In each case, he explicitly promised not to reveal confidential information. Yet according to prosecutors he repeatedly broke that promise by passing tips to Martoma.
from The Great Debate UK:
- Soe Paing is Director of the Office of the National Coalition Government of the Union of Burma, based in the U.S. The opinions expressed are his own. -
The arrest and the filing of criminal charges against Aung San Suu Kyi for alleged violation of house arrest rules under Section 22 of the 1975 State Protection Law or "Law to Safeguard the State Against the Dangers of Those Desiring to Cause Subversive Acts" indicate that the incumbent military regime in Burma is not interested in the offer of Aung San Suu Kyi's party -- National League for Democracy (NLD) -- to join the elections scheduled for 2010 if certain conditions are met.