Former SA C manager Martoma loses bail bid
• Former SAC Capital portfolio manager Mathew Martoma on Tuesday lost a bid to stay out of prison while he appeals his insider trading conviction, three weeks before he is due to begin serving a nine-year sentence.
U.S. District Judge Paul Gardephe in New York denied Mr. Martoma’s request for bail pending his appeal, as well as a separate request to delay his surrender date of Nov. 10 in order to give him time to seek bail from the 2nd U.S. Circuit Court of Appeals.
“The evidence of Martoma’s guilt at trial was overwhelming,” Mr. Gardephe wrote. “None of Martoma’s arguments regarding the sufficiency of the evidence or legal error at trial are persuasive.”
Richard Strassberg, Mr. Martoma’s lawyer, declined to comment. Mr. Martoma could still petition the 2nd Circuit for bail pending his appeal.
A jury convicted Mr. Martoma, 40, of securities fraud and conspiracy in February for engaging in what authorities called the most lucrative insider trading scheme in U.S. history.
Prosecutors said SAC, the hedge fund founded by billionaire Steven A. Cohen, was able to make US$275million in July 2008 from trades in Elan Corp. and Wyeth based on illegal tips Mr. Martoma received about a clinical trial for an Alzheimer’s drug.
Elan was acquired last year by Perrigo Company PLC, while Wyeth is now owned by Pfizer Inc.
Mr. Martoma’s nine-year sentence, which Mr. Gardephe imposed last month, is among the longer prison terms in U.S. insider trading cases.
The case stemmed from a long-running investigation into SAC that has led to the conviction of eight employees. SAC itself pleaded guilty to fraud charges and agreed to pay US$1.8-billion in criminal and civil settlements.