SAC Insider-Trading Story Featured In TV Show

Apr 29 2013 | 12:03pm ET

The SAC Capital Advisors insider-trading scandal has made it to the small screen.

"Person of Interest" featured a plotline seemingly ripped from the headlines about the hedge fund on Thursday night. The CBS crime drama told the tale of insider-trading at a hedge fund called "VAC Capital," in which a doctor overseeing a drug trial warns a trader that the trial was "about to fail." The VAC trader turned a $500 million profit on the tip.

The story bears obvious similarities to the case against former SAC trader Mathew Martoma, who is accused of earning SAC $276 million trading on tips about Alzheimer's drug trials he received from a University of Michigan professor who was overseeing them. The now-former professor, Sidney Gilman, has pleaded guilty to warning Martoma about an adverse turn in the trials.

"Person of Interest" also features the term "black edge," which is allegedly used by SAC traders to refer to insider information, the New York Post reports.

"You don't understand," the VAC trader tells his source on the show. "The boss is on my ass 24/7. Either get black edge or out."

"Black edge?" the doctor, who in the show has confronted the trader about his trades, asks.

"Inside information that no one else has," the trader replies.

Martoma has pleaded not guilty to the allegations against him.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note