Updated 7 p.m. ET: A former hedge fund manager was charged Tuesday in what prosecutors are calling the most lucrative insider trading scheme ever, with ill-gotten gains totaling more than $250 million.
The former hedge fund manager, Matthew Martoma, worked for some time for SAC Capital, according to sources who confirmed his employment history with Reuters on Tuesday.
Martoma, who has been charged with trading on inside information on some drug companies, worked at CR Intrinsic Investors, a unit of SAC. Martoma's lawyer, Charles Stillman, said his client was an "exceptional portfolio manager" and he is confident Martoma will be exonerated.
Martoma is the fifth person associated with SAC Capital, one of the most widely followed and influential hedge funds, to be charged with insider trading in either a criminal or civil proceeding. He had worked for a unit of SAC Capital called CR Intrinsic Investors in Stamford, Connecticut until 2010.
Reuters contributed to this report.