He was arrested Tuesday on allegations that he used the information to advise other investment professionals to buy shares in the companies developing the drug, then later to dump those investments and place financial bets against the companies when the tests returned disappointing results.
Martoma's trades helped reap a hefty profit from 2006 through July 2008, while he worked for CR Intrinsic Investors LLC of Stamford, Conn., an affiliate of SAC Capital Advisors, a firm owned by Steven A. Cohen, one of the nation's wealthiest hedge fund managers.
Hostess gets OK to begin winding down businessWHITE PLAINS, N.Y. (AP) â¿¿ A bankruptcy court judge on Wednesday approved a request by Hostess Brands Inc. to begin winding down its operations. The ruling came after the maker of Twinkies, Ding Dongs and Wonder Bread failed in last-ditch negotiations to end a strike by its second-largest union. Hostess now has the green light to terminate the jobs of its 18,000 workers without risking legal action, and to sell off its brands. ___ Fewer seek US jobless aid as storm distorts data WASHINGTON (AP) â¿¿ The number of people seeking unemployment benefits fell sharply last week to a seasonally adjusted 410,000, though the figure was elevated for the second straight week by Superstorm Sandy. The Labor Department said Wednesday that applications dropped by 41,000 from the previous week, when the storm drove applications to their highest level in 18 months. The four-week average, a less volatile measure, rose by 9,500 to 396,250. Sandy could distort the data for another week, department officials say. The storm caused nearly 44,000 people in New York and 31,000 in New Jersey to seek benefits two weeks ago, according to the latest state data available. ___ Rate on US 30-year mortgage hits record 3.31 percent WASHINGTON (AP) â¿¿ Average U.S. rates on fixed mortgages fell to record lows this week, a trend that is boosting home sales and aiding the housing recovery.