Indian-origin hedge fund manager freed on bail

A prominent Indian-origin hedge fund portfolio manager, charged with participating in one of the “most lucrative” insider trading schemes ever in the US, has been released on a $5 million bail.

Mathew Martoma, 38, appeared in a brief hearing on Monday before US Magistrate Judge James Cott at the Manhattan federal court here.

Martoma, who was arrested last week at his home in Boca Raton, Florida, did not enter any plea and the judge set a next court hearing of December 26. Martoma has been charged with using material, non-public information that he received from a doctor on the clinical trial of an Alzheimer’s disease drug to make profits and avoid losses for his hedge fund in an amount totalling approximately $276 million.

The US Securities and Exchange Commission have also filed a civil insider trading case against him on similar charges.

A Stanford University graduate, Martoma is the son of Indian immigrants and was born Ajai Mathew Mariamdani Thomas. He later changed his name in 2003. Under the new bail requirements, Martoma would have to post $2 million in cash or property by next week.

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