Federal prosecutors on Tuesday charged former hedge fund manager Mathew Martoma with securities fraud for his alleged role in a highly lucrative insider trading case. Martoma allegedly made illegal use of information regarding the clinical trials for a druge designed to treat Alzheimer's.

Prosecutors said various investment advisors and hedge funds raked in more than $276 million before the adverse results of the clinical trials were revealed in 2008. A U.S. attorney involved in the case said the case "might be the most lucrative inside tip of all time."