Insider trading suspect freed on bail
NEW YORK — A former hedge fund portfolio manager accused of enabling a quarter of a billion dollars in profits by passing along inside information in one of the largest insider trading fraud cases in history appeared in a Manhattan court for the first time Monday and was released on $5 million bail, though his movements were restricted.
Mathew Martoma, 38, of Boca Raton, Fla., was read his rights by U.S. Magistrate Judge James Cott, who agreed to impose a bail package that prosecutors and Martoma's lawyers had worked out after his initial court appearance in Florida last week. He had been free on $5 million bail in Florida as well. Martoma must post $2 million in cash or property by next week to satisfy bail requirements.
Martoma was arrested last week on charges that between 2006 and 2008, he helped engineer one of the largest insider trading frauds in history. Martoma worked with CR Intrinsic Investors, an affiliate of SAC Capital Advisors. Steven A. Cohen, one of the world's richest men, owns SAC.
Martoma was arrested on Nov. 20 in Florida. Prosecutors say he exploited an acquaintance with a medical school professor to get confidential, advance results from tests of an Alzheimer's disease drug.
They say he shared the information with others, enabling more than $276 million to be made illegally. The government said in court papers that he caused other investment advisers to buy shares in the drug companies, and then he and the others ditched their investments before the public found out about the drug trial's disappointing results, allowing them all to make big profits and avoid huge losses.
The FBI subpoenaed SAC and other influential hedge funds in November 2010.
SAC spokesman Jonathan Gasthalter has said the company and Cohen are cooperating with the inquiry and “are confident that they have acted appropriately.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Connellsville Area High School’s marching band to play national anthem at PNC Park
- Google rejects European Union antitrust charges over search results
- 17 years later, late Frazier superintendent’s vision of new school nearly a reality
- Starkey: Steelers stopping themselves with suspensions
- Plum grad McGough realizes dream, unfazed by demotion to minors
- New Kensington-Arnold School District officials to discuss anti-bullying proposals
- Apollo fountain to return
- Pirates turn nifty double play in 9th, edge Marlins
- Cupboard’s not bare for Monessen boys
- Alleged Donora Towers burglar jailed
- Engineer advises Springdale Borough that other water plant options cost ‘significantly’ less