Demand for grass-fed beef is growing









Jeremy Parker is a rancher who raises his cattle the old-fashioned way. His herd feeds on grass.

"There's definitely growing demand" for grass-fed beef, he said. "There's more demand than there is availability."

Although still only about 3% of the beef consumed in the U.S., grass-fed beef will keep rising in popularity, advocates, consumers and producers predict. One study put demand growth at 20% a year.





"It's expanded dramatically," said Alan Williams, a grass-fed beef producer and member of the Pasture Project, an effort to get more conventional producers in the Midwest switching to pasture-based systems. "In the late 1990s there were only 100 producers. Now there are more than 2,000. The market has grown from being $2 million to $3 million to over $2.5 billion in retail value."

Most cattle raised in the U.S. are sent to feedlots, in Kansas and Nebraska mostly, where the animals are fattened and "finished" on a diet of corn and other grains.

This feedlot system has enabled the country to develop its massive beef industry cheaply, efficiently and with less manpower.

Cattle ranchers contend that a wholesale, or even partial, transition to a grass-based system would be impractical and would drive up costs.

In recent years, however, critics of the feedlot system say the industry's growth has come at too high a cost for the environment, for human health and for the animals themselves.

About 40% of the country's corn now goes to livestock, helping make corn the most grown, and most valuable, crop in the country. But corn production is nitrogen-intensive, and critics say that run-off from nitrogen fertilizer has contributed to polluted waterways, most notably the growing "dead zone" in the Gulf of Mexico.

At the same time, cattle's corn-centric diets have contributed to fattier, less-nutritious beef that is higher in cholesterol and lower in good fatty acids, some say.

Because the cost of that beef is relatively low, consumers can afford to eat more of it, often in the form of fast-food burgers.

"Basically, it comes down to time," said Patricia Whisnant, president of the American Grassfed Assn., and a Missouri producer whose Rain Crow Ranch is among the largest grass-fed beef operations in the country. "You take an animal off of pasture, you give him antibiotics and corn, you're looking at harvesting that animal in 12 to 14 months. On grass, you're looking at 24 months, and more likely 28."

Altogether, these factors appear to be getting the attention of consumers who are willing to pay a premium for grass-fed beef. Producers and retailers are responding.

Until recently, most grass-fed beef was sold directly by the producer to the consumer, who often arranges to buy a whole side of beef through a special arrangement. Some grass-fed beef is also sold directly through buyers clubs.

But now it's becoming a bigger business, with some supermarket chains now stocking grass-fed beef.

Gustin writes for the St. Louis Post-Dispatch





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Growing up with grandma









NEW YORK — Each day at 5 a.m., Denise Peace rises and begins the task of waking and feeding five grandchildren, ages 2 to 17, and shepherding them out the door of her cramped but miraculously neat apartment in Brooklyn.

The 5-year-old needs to be on his school bus by 6:26. The eldest has to catch a 7 a.m. train. The 4-year-old must be walked to school in time for the 8:10 bell. The 2-year-old plays while Peace prepares the 3-year-old for day care. In the early afternoon, she reverses the drill, fetching children from bus stops and schools and getting them home for dinner, baths and bed. Peace collapses about 9 p.m.

"Then I just start all over again," the 56-year-old said of the moment when her alarm sounds the next morning.

It's a routine that changes once a month, when Peace travels to a Brooklyn church and meets with dozens of other grandmothers — and some great-grandmothers — in similar situations. All have been catapulted back into full-time parenting by the sudden losses of their own children. All have been brought together by the New York Police Department and local clergy for a chance to swap stories, compare legal and parenting advice, cry on a friendly shoulder, pray and simply let off steam.

"It comforts you. It lets you know you're not alone in this," said Peace, who learned of the close-knit group called Grandmothers LOV — for Love Over Violence — as she searched for programs last year to help women like herself. "They have your back. It's like another family."

It's a family that is growing. According to the 2010 census, the number of grandparents who are primary caregivers to grandchildren has risen 12.8% since 2000, from about 2.4 million to more than 2.7 million. Between 1990 and 2000, census figures indicate that the number of U.S. children being raised by grandparents rose 30%. And the Annie E. Casey Foundation, which studies children's issues, says that in 1970, 3.2% of U.S. children lived in grandparent-run households; by 1997, it was 5.5%.

With today's grandparents — particularly grandmothers — living longer and often staying healthier, they are more likely to be able to step in if parents die or are unable to raise their children because of illness, incarceration, drug abuse or other problems. The recession is believed to have played a role in the increase, with grandparents more apt than many parents to have the financial stability needed to raise children, said Robert Geen, the Annie E. Casey Foundation's family services policy director.

"I think there is a concern that the tough economic environment is putting pressure on parents — that it is simply overwhelming them," Geen said. "The big concern is that our social services system is completely oriented toward a nuclear family, so support available to grandparents is fairly lacking."

Joanne Jaffe, the housing chief for the New York Police Department, had noticed how many grandmothers were becoming the anchor for disjointed families. LOV, which first met in September 2010, evolved from her observations, and from Police Commissioner Raymond Kelly's work with Brooklyn clergy to combat youth violence.

Jaffe focused on grandmothers — not grandfathers — for several reasons. Among them: far more grandmothers than grandfathers are thrust into parenting roles because they often have more time, experience and willingness than men of their generation to rear their children's children. Jaffe wanted to empower those women to become leaders in combating violence and other problems in their communities.

"It's a giant family therapy group," Jaffe said recently as LOV members trickled into the Mt. Sion Baptist Church, on a busy corner near a loud highway overpass. There were women leaning on walkers and on canes, and at least one in a wheelchair. Another came with a squirming toddler in her arms.

There were squeals of joy and cries of "Welcome back!" as the women who had not seen each other in eight weeks — the group had taken a summer hiatus — huddled like giddy teenagers. For the next 21/2 hours, with their grandchildren and great-grandchildren in day care, at school, or being cared for by baby-sitters or other family members, they could focus on themselves and one another.

Inez Rodriguez said she had canceled hip and knee replacement surgery to come to the gathering. Daphne Georgalas lamented the challenge of resting babies on her tired shoulders. "I thought I was done — and lo and behold I have little Princess Emily now," she said of her infant granddaughter.

Jaffe, whose NYPD uniform was in sharp contrast to the colorful dresses and hats worn by many of the grandmothers, made a point not to sound too cheery as she greeted the crowd. Instead, she alluded to the city's bloody summer, when shootings left several children and teenagers dead and wounded in the very neighborhoods that many of the grandmothers call home, and hope to change by keeping their own grandkids out of trouble.

"I'm not going to say it was a wonderful summer. I'm not coming here saying it's been a wonderful year," Jaffe said as cries of "Amen" and knowing "Uh-huhs" filled the room.

As police officers in uniform dished out a hot buffet breakfast, the women began catching up with one another. One of them was Carolyn Faulkner, a slender 74-year-old, who raised two grandchildren, now 21 and 19, and is now raising a third — a 10-year-old girl.

"Between running to school and going to PTA meetings, it's a lot of work, but you know what they say to me?" she said of her grandchildren. "'Thanks, Grandma.' That's more than money can buy."

Faulkner says she stepped in to care for her eldest daughter's three children when it became clear their mother was not up to the task.

"She didn't do drugs or anything. She just didn't grow up," said Faulkner, who with her husband of 50 years has run a wedding planning business among other enterprises, and who sits on her neighborhood's community board.

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Chevy Chase is leaving NBC's sitcom 'Community'

LOS ANGELES (AP) — The NBC series "Community" will finish the season without Chevy Chase.

Sony Pictures Television said Wednesday that the actor is leaving the sitcom by mutual agreement with producers.

His immediate departure means he won't be included in the last episode or two of the show's 13-episode season, which is still in production.

Chase had a rocky tenure playing a bored and wealthy man who enrolls in community college. The actor publicly expressed unhappiness at working on a sitcom and feuded last year with the show's creator and former executive producer, Dan Harmon.

The fourth-season premiere of "Community" is Feb. 7, when it makes a delayed return to the 8 p.m. EST Thursday time slot. The show's ensemble cast includes Joel McHale and Donald Glover.

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National Briefing | West: California: Toll Rises From Poisonous Mushroom Soup



A third person has died from eating soup made from poisonous mushrooms at a senior care center, authorities said Wednesday. The person’s name was not released. Three other people were sickened at the Gold Age Villa in Loomis. The caretaker who prepared the soup, who was among those sickened, apparently picked them from the backyard of the six-bed facility and did not know they were poisonous.


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Hostess wins court approval to shut down









Twinkies maker Hostess Brands Inc. won court approval to start shutting down operations, selling its assets and laying off its 18,500 workers, after the failure of an 11th-hour mediation to try to resolve a labor dispute.


U.S. Bankruptcy Judge Robert Drain gave Hostess the go-ahead Wednesday to sell its plants and brands after he presided over the closed-door talks Tuesday with the company and the striking Bakery, Confectionery, Tobacco and Grain Millers Union, which represents about 5,000 Hostess workers.


Heather Lennox, a lawyer for Hostess, said in court that the company has received a "flood of inquiries" from potential suitors.





Among the possible bidders are Nature's Own parent Flowers Foods Inc., Sun Capital Partners Inc., Sara Lee owner Grupo Bimbo, Pabst Blue Ribbon owner C. Dean Metropoulos & Co. and investment firm Hurst Capital, according to reports and analysts.


An outpouring of concern and nostalgia broke out last week when Hostess said publicly that it would shut down. It held back to give mediation a try, but Wednesday's action kindled disappointment among workers' families.


"My uncle lost his job of 27 years working for Merita Bread (partnered with Hostess)," tweeted user @sunlightmocha. "He had only ever taken ONE sick day. It's so sad."


"I'm so sad Hostess went out of business," tweeted user @NikkiKiley1. "My dad lost his job and I will never get to eat a Twinkie again. What a bad day."


"This is truly a sad day for thousands of families," said Ken Hall, general secretary-treasurer of the non-striking Teamsters union, the largest at Hostess with 6,700 members.


The 82-year-old company said that it would shrink its head count to 3,200 workers in the coming months and that those remaining would stay until the liquidation is done, which it said would take a year.


Hostess, based in Irving, Texas, will end up closing 33 bakeries, 565 distribution centers and 570 bakery outlet stores nationwide. In Southern California, the maker of Ho Hos, Ding Dongs, Dolly Madison Cakes, Wonder bread and other products employed more than 500 workers at the start of the year.


Hostess filed for bankruptcy in January for the second time in a decade.


It first moved to shut down its operations Friday, blaming the union for a strike that "crippled its operations at a time when the company lacked the financial resources to survive a significant labor action."


The baker said its "inflated cost structure," which it attributed primarily to its collective bargaining agreements, put it at a "profound competitive disadvantage."


Workers who walked off their jobs accused Hostess of awarding pay increases to executives while pillaging employee benefits and wages.


In court Wednesday, Drain noted that the failure of the talks was the result of disagreements and not the fault of either party. He allowed the company to remain in control of the liquidation, rejecting a request to turn the Chapter 11 proceeding into one overseen by the U.S. trustee's office under Chapter 7.


The company will return to court later to seek approval to sell off specific brands, which financial advisors testified could generate $1 billion in proceeds.


Last year, Hostess reported sales of $2.45 billion, down 2% from the year before, according to estimates from research group PrivCo. The company's net loss more than doubled to $341 million from $136 million, according to the report.


tiffany.hsu@latimes.com





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LAFD looks at ways to speed up emergency response times









Los Angeles Fire Department officials, facing criticism over slow response times to 911 calls, are considering two new strategies that could get rescuers to the scene of medical emergencies more quickly.


One program, known as "quick launch," reduced the time it took to get fire units moving by an average of 50 seconds — roughly in half — during a test period in 2006. The experiment allowed dispatchers to send units before fully determining the nature of emergencies, according to internal LAFD documents obtained by The Times.


The test was discontinued because so many rescue units were being dispatched that it created gaps in coverage, department officials said during a Fire Commission meeting Tuesday. "It ties up resources," Fire Chief Brian Cummings explained to reporters.





FULL COVERAGE: 911 breakdowns at LAFD


But with pressure building to reduce response times, Cummings and the fire commissioners said Tuesday that the department will reexamine the program to see if it can be improved.


The agency also plans to roll out a separate program that would quickly alert paramedics and emergency medical technicians whenever a 911 call is received from their area. The alert would give rescuers a head start on gathering gear and getting into their trucks while dispatchers collect information on the nature of the emergency, according to the commander of the LAFD dispatch center.


The department is struggling to improve its data analysis and trying to reassure the public and elected officials about its emergency response performance. Fire officials have been under scrutiny since March, when they acknowledged that for years they had produced reports that made it appear rescuers were getting to victims faster than they actually were.


Fire commissioners on Tuesday also discussed a study by a special task force that found the department has produced inaccurate response-time data that should not be relied upon. Some of the faulty reports were used by City Council members when they decided to shut down fire engines and ambulances at more than one-fifth of the city's 106 firehouses.


A Times investigation earlier this year found LAFD's dispatchers lag well behind national standards that call for rescuers to be sent to those in need in under 60 seconds on 90% of 911 calls. Those findings were confirmed this week in the report from the task force, which was headed by Asst. Chief Patrick Butler and included experts from inside and outside the department.


The quick-launch dispatching experiment was conducted over a four-week period in the summer of 2006. Dispatchers normally ask callers a series of carefully scripted questions to determine the severity of a medical incident. The answers typically must be entered into a computer before firefighters are dispatched.


The pilot program got rescuers rolling earlier in the 911 call-handling process. The 50-second reduction in average dispatching time exceeded officials' expectations and was "especially encouraging," according to an internal LAFD study obtained by The Times.


But Asst. Chief Daniel McCarthy, commander of the LAFD dispatch center, said firefighters were being sent to shooting scenes and other potentially dangerous locations not knowing what to expect.


"We put people at risk when we did that," McCarthy told The Times.


He said the department also will deploy a new dispatching system known as "quick alert." Rescuers will be notified over loudspeaker and by Teletype as soon as a medical 911 call is received involving their fire station's service area, speeding up so-called turnout time. Special notification equipment is expected to be installed at fire stations over the next 18 months, McCarthy said.


Last week, The Times reported that waits for medical aid vary dramatically across Los Angeles' diverse neighborhoods. Residents in many of the city's most exclusive hillside communities can wait twice as long for rescuers as those living in more densely populated areas in and around downtown, according to the analysis that mapped out more than 1 million dispatches since 2007.


Cummings acknowledged the findings on Tuesday, saying waits for help are longer in areas farther from fire stations.


"It is a matter of geography," the chief said. "Personally, if I had a serious medical condition, I'd live close to a hospital."


FULL COVERAGE: 911 breakdowns at LAFD


robert.lopez@latimes.com


ben.welsh@latimes.com





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Scott Derrickson to direct feature adaptation of hit video game “Deus Ex: Human Revolution”
















LOS ANGELES (TheWrap.com) – Scott Derrickson (“Sinister,” “The Exorcism of Emily Rose“) has signed on to direct the big screen adaptation of the hit Square Enix video game, “Deus Ex: Human Revolution,” for CBS Films, the company announced on Thursday.


Derrickson will also write the screenplay for the film with C. Robert Cargill (“Sinister.”)













Roy Lee and Adrian Askarieh are attached to produce the film, with John P. Middleton serving as the executive producer.


Set in the near future, when dramatic advances in science, specifically human augmentation, have triggered a technological renaissance, “Deus Ex: Human Revolution” follows Adam Jensen, an ex-SWAT security specialist who must embrace mechanical augments in order to unravel a global conspiracy.


“‘Deus Ex’ is a phenomenal cyberpunk game with soul and intelligence,” said Derrickson. “By combining amazing action and tension with big, philosophical ideas, ‘Deus Ex‘ is smart, ballsy, and will make one hell of a movie. Cargill and I can’t wait to bring it to the big screen.”


The “Deus Ex” franchise was originally introduced in June 2000. Its latest entry, “Deus Ex: Human Revolution,” launched in 2011, ranked number one across global sales charts and earned over 100 industry awards.


Developed by Eidos-MontrĂ©al and published by Square Enix, “Deus Ex: Human Revolution” will serve as the primary template for the film.


Derrickson and Cargill, pictured above, are represented by WME and managed by Brillstein Entertainment Partners.


Gaming News Headlines – Yahoo! News



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One Direction's 2nd CD hits No. 1, sells 540,000

NEW YORK (AP) — One Direction's "Take Me Home" is the taking the boys to the top of the charts — and to new heights.

The group's sophomore album has sold 540,000 in its first week, according to Nielsen SoundScan. It's the year's third-highest debut behind Taylor Swift's "Red," which sold 1.2 million units its first week earlier this month, and Mumford & Sons' "Babel," which sold more than 600,000 albums in September in its debut week.

"We just want to say a massive thanks to all the fans who have supported us," band member Harry Styles, 18, said in an interview Tuesday from London. "We can send tweets and thank them, but 140 characters is never going be enough to say how much it means."

The album also debuted at No. 1 in the United Kingdom this week. The fivesome's debut, "Up All Night," came in at No. 2 in the United Kingdom last year; it was just released in March in America, where it hit No. 1 and has achieved platinum status.

"We were a little bit nervous about how people were going to take it," 19-year-old Niall Horan said of the new album during tour rehearsals. "Everyone gets that second album syndrome."

They say though they're excited, they won't be celebrating too much: "We're finishing rehearsing soon and we're going home to bed."

One Direction, who placed third on the U.K. version of "The X Factor" in 2010, is signed to Simon Cowell's Syco label imprint. In just a year, the band has become worldwide sensations, thanks to its feverish fans. They released a book and have a Nickelodeon show and 3-D movie planned. They also made the cut for Barbara Walters' most fascinating people of 2012 list, which includes New Jersey Gov. Chris Christie and U.S. gold medalist Gabby Douglas.

One Direction says those experiences have helped the group mature.

"We've been working hard. We're starting to grow up," Horan said. "We're still young, but we've passed the initial teenage years. ...We've grown up quite quick in the job we have to do and we became a lot more independent."

The group — which includes Zayn Malik, Liam Payne and Louis Tomlinson — will launch a worldwide tour in February. They hope to work with Katy Perry and are still trying to adjust to the celebrity and fame that has taken over their lives.

"I can see how it gets to people. I guess it's quite easy to get wrapped up in it all," Styles said. "We do the same things every other lad our age does. We go out, we have fun, we meet girls and stuff like that. Sometimes it gets written about, which, yeah, we think about it and it's absolutely crazy. It's still a bit weird thinking that that's the way it is."

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Online:

http://www.onedirectionmusic.com/us/home/

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Follow Music Mesfin on Twitter at http://twitter.com/MusicMesfin

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Well: The 'Love Hormone' as Sports Enhancer

Is playing football like falling in love? That question, which would perhaps not occur to most of us watching hours of the bruising game this holiday season, is the focus of a provocative and growing body of new science examining the role of oxytocin in competitive sports.

Phys Ed

Gretchen Reynolds on the science of fitness.

Oxytocin is, famously, the “love hormone,” a brain peptide known to promote positive intersocial relations. It makes people like one another, especially in intimate relationships. New mothers are awash in oxytocin (which is involved in the labor process), and it is believed that the hormone promotes bonding between mother and infant.

New-formed romantic couples also have augmented bloodstream levels of the peptide, many studies show. The original attraction between the lovers seems to prompt the release of oxytocin, and, in turn, its actions in the brain intensify and solidify the allure.

Until recently, though, scientists had not considered whether a substance that promotes cuddliness and warm, intimate bonding might also play a role in competitive sports.

But the idea makes sense, says Gert-Jan Pepping, a researcher at the Center for Human Movement Sciences at the University of Groningen in The Netherlands, and the author of a new review of oxytocin and competition. “Being part of a team involves emotions, as for instance when a team scores, and these emotions are associated with brain chemicals.”

Consider, he says, what happens during soccer shootouts. For a study that he and his colleagues published in 2010, they watched replays of a multitude of penalty shootouts that had decided recent, high-pressure World Cup and European Championship games.

They found that when one of the first shooters threw his arms in the air to celebrate a goal, his teammates were far more likely to subsequently shoot successfully than when no exuberant gestures followed a goal.

The players had undergone, it seems, a “transference of emotion,” Dr. Pepping and his colleagues wrote. Emotions such as happiness and confidence are known to be contagious, with one person’s excitement sparking rolling biochemical reactions in onlookers’ brains.

In the shootouts, he says, each player almost certainly had experienced a shared burst of oxytocin, and in the rush of positive feeling, had shot better.

It is difficult, however, to directly quantify changes in oxytocin levels during sports, largely because of practical logistics. Few teams (or referees) will willingly pause games or celebrations after a thrilling play in order for scientists to draw blood.

But there are hints that physical activity, by itself, may heighten production of oxytocin. In a 2008 study, distance runners had significantly higher bloodstream levels of oxytocin after completing an ultramarathon than at the start.

More telling, in a study presented last month at the annual meeting of the Society for Neuroscience in New Orleans, male prairie voles that exercised by running on wheels over six weeks displayed changes in their nervous systems related to increased oxytocin production and bonded rapidly and sturdily with new female cage cohabitants, while unexercised males showed little interest in any particular mate.

“Lots of stresses can trigger oxytocin release, among them exercise,” says William Kenkel, a doctoral candidate at the University of Illinois at Chicago, who led the study. He continued that “it stands to reason, then,” that such exercise-related oxytocin release “could facilitate social bonding.”

What this means for competitive athletes is that, in unexpected ways, every game or race may be a kind love match. And that’s good, Dr. Pepping says.

“In any social setting that requires some form of social interaction, be it cooperation, trust or competition, we require social information to guide our behavior and a nervous system and associated brain chemicals that are sensitive to this social information,” he said. A player needs to accurately scrutinize the body language of his or her opponents and teammates in order to gauge how they will respond during the next play, he points out. They also generally benefit from a tug of fellow feeling toward teammates, their “in-group,” and antagonism toward the other team or competitors, the “out-group.”

Oxytocin facilitates the ability to read other people’s emotions, and it deepens bonds between group members and heightens suspicion of and antagonism toward those outside the group, Dr. Pepping says.

It is also believed, as blood and brain levels rise, to encourage gloating.

So oxytocin is almost certainly an essential, if unacknowledged, player in most competitions.

But people differ in how much oxytocin they produce and in how their bodies respond to the hormone, a situation that has not, to date, been considered when judging athletes and their potential, Dr. Pepping points out, or when planning training routines. “Performance is not simply a matter of physique and strength” or of technique, he says. “It is important to start taking social emotions seriously,” he says, “and in particular those linked to positive emotional experiences.”

Encourage athletes to celebrate openly after a big play or new personal record (within the bounds of what referees will tolerate, of course). High-five often. Even gloat. “A healthy degree of gloating,” prompted by squirts of oxytocin, “could well be associated with and feed an athlete’s self-confidence,” Dr. Pepping says.

Athletes, by the way, aren’t the only group affected by oxytocin in a sports setting, “Sports fans, too, experience spurts of oxytocin release,” Dr. Pepping says, including the half-hearted. “Even when you don’t much like sports,” he says, watching others high-five and leap about the living room after their favored team scores will lead “your body to release oxytocin.” At that moment, we are all a fervent Bears or Giants or Oklahoma City Thunder fan, whatever we might think, in our more sober moments, about that James Harden trade.

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Ex-hedge fund manager Mathew Martoma accused of insider trading









NEW YORK — After building a huge stake in two drug companies, hedge fund manager Mathew Martoma told his powerful boss on a Sunday morning that they had to immediately dump their position.


It was an unusual request even by the outsized standards of Wall Street, but the hedge fund quietly liquidated its $700-million position within days.


Federal authorities suggested Tuesday why Martoma was in such a hurry back in 2008 — he'd allegedly gotten an illegal tip about big problems with the companies' developmental Alzheimer's drug. It was the most profitable insider-trading scheme in U.S. history, netting $276 million in profit and avoided losses, according to prosecutors.





But it resulted in criminal charges against Martoma and a swirl of questions about his boss, Steven Cohen, who is one of the most celebrated figures on Wall Street.


Cohen is worth an estimated $8.8 billion and lives in a 35,000-square-foot mansion in Greenwich, Conn., that includes an ice rink and Zamboni machine. He helped bankroll a failed bid last year to buy the Dodgers.


His firm, SAC Capital Advisors, has drawn attention in recent years as the government launched a massive crackdown on insider trading.


The hedge fund reportedly told clients it received a subpoena seeking a "broad" array of documents in late 2010. Around that time, two hedge funds founded by SAC alumni were raided by FBI agents as the government pursued its insider probe.


Martoma is the fifth person affiliated with SAC Capital to be charged in insider-related cases. Cohen's ex-wife sued him three years ago, alleging that her former husband amassed his fortune partly through insider trading.


Cohen was not named in the dual federal and civil complaints Tuesday, but experts said the government might have him in its sights.


In a civil complaint filed by the Securities and Exchange Commission, Cohen is referred to as "Portfolio Manager A," the Wall Street Journal reported. The companion criminal action lists Cohen as the "owner" of hedge funds involved in the scheme, the Journal said.


"He is to hedge funds what Michael Milken, back in the '80s, was to investment bankers," said John Coffee, a law professor at Columbia University. "The government seems to be within one move of getting a key witness against one of the most important figures in the new universe of hedge funds."


An SAC spokesman disputed that.


"Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government's inquiry," the spokesman said in a statement.


Martoma's lawyer denied wrongdoing by his client.


"Mathew Martoma was an exceptional portfolio manager who succeeded through hard work and the dogged pursuit of information in the public domain," the lawyer, Charles Stillman, said in a statement. "What happened today is only the beginning of a process that we are confident will lead to Mr. Martoma's full exoneration."


The case revolves around a drug developed by Irish biotechnology company Elan Corp. and New Jersey-based pharmaceutical giant Wyeth, which was acquired by Pfizer Inc. in 2009.


Martoma specialized in healthcare stocks for an SAC unit called CR Intrinsic. He got a series of tips about the drug, bapineuzumab, from Dr. Sidney Gilman, a neurology professor at the University of Michigan, the government said.


Gilman consulted for Elan and Wyeth. Martoma was connected to Gilman by an "expert network" that matches investors with specialists in various fields.


After initial optimism about bapineuzumab, a clinical trial showed disappointing results. Gilman allegedly alerted Martoma to the test results shortly before public disclosure in July 2008, prompting Martoma's 8:52 a.m. email to Cohen.


The subsequent selling accounted for a whopping 20% of Elan's trading volume and 11% of Wyeth's at one point, according to the FBI. The fund even bet against the companies by "shorting" their stocks.


"And so, just like that, overnight, Martoma went from bull to bear as he tried to dig his hedge fund out of a massive hole," Preet Bharara, the U.S. attorney in Manhattan, said at a news conference.


Elan shares slumped 42% the day after the results were revealed.


Martoma is the fifth former SAC employee and the 73rd defendant accused of insider trading by Bharara's office since August 2009. Of those defendants, 69 have been convicted, most of them through plea agreements.


Bharara's office agreed to not prosecute Gilman, 80, in exchange for his testimony.


Martoma, 38, got an annual bonus of $9.3 million, primarily stemming from the profits in Elan stock, according to the government.


He got no bonus after disappointing years in 2009 and 2010 and was terminated in 2010. According to the government, an email recommending his termination said Martoma appeared to be a "one trick pony with Elan."


andrew.tangel@latimes.com


walter.hamilton @latimes.com





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