Martoma Fund Used Dark Pool to Keep Insider Trading Quiet
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When Mathew Martoma needed to get rid of more than 10 million Elan Corp. shares in July 2008 without drawing attention, his trader turned to dark pools, the government says.
Martoma, a former fund manager for Steven A. Cohen’s SAC Capital Advisors LP who prosecutors said ran the biggest-ever insider trading scheme, wanted to sell in a way “so as not to alert anyone else,” according to a complaint filed in federal court in Manhattan yesterday. SAC used algorithms and dark pools to keep the trades quiet, the government alleged.