Monday, 22 December 2014
Last updated 8 hours ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.