The Morning Brief: The Heat Is on SAC; Citadel’s Abercrombie Play

November 21, 2012   Stephen Taub

SAC’s Steve Cohen is no doubt feeling the heat being turned up under his firm. Prosecutors Tuesday charged Matthew Martoma, a former portfolio manager at CR Intrinsic (a wholly owned division of SAC Capital), of using illegally obtained inside information to make profits and avoid losses of about $276 million, in what Manhattan U.S. Attorney Preet Bharara called “the most lucrative inside tip of all time.” The 38 year-old, who worked at CR Intrinsic between 2006 and 2010, was arrested earlier in the day in Boca Raton, Florida. He is accused of receiving the non-public information from a doctor who served as an adviser to Elan Corp., a...

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