FAD-dependent monooxygenase; part of the ATM1 gene cluster that mediates the biosynthesis of aflatrem, a tremorgenic mycotoxin with acute neurotoxic effects (PubMed:15528556, PubMed:19801473, PubMed:2867895). Synthesis of geranylgeranyl diphosphate (GGPP) by AtmG (a GGPP synthase) precedes condensation of GGPP with indole 3-glycerol phosphate, followed by epoxidation and cyclization by AtmM (a FAD-dependent monooxygenase) and AtmC (a prenyltransferase) to produce paspaline (PubMed:19801473). AtmB is also essential for paspaline production, but its exact role has not been identified yet (PubMed:19801473). AtmP, a cytochrome P450 monooxygenase, subsequently converts paspaline to 13-desoxypaxilline via PC-M6 by removal of the C-30 methyl group and oxidation at C-10 (PubMed:19801473). AtmQ, a cytochrome P450 monooxygenase, then catalyzes the oxidation of 13-desoxypaxilline, first at C-7 to produce paspalicine and then at C-13 to form paspalinine (PubMed:19801473). Finally, AtmD prenylates paspalinine to form aflatrem (PubMed:19801473). Secondary metabolite biosynthesis. The onset of expression correlates with the onset of aflatrem biosynthesis in stationary cultures (PubMed:15528556, PubMed:19801473). Expression is induced by the developmental and secondary metabolism regulator veA (PubMed:16988822). Belongs to the paxM FAD-dependent monooxygenase family.