TribLIVE

| Home


Weather Forecast
 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Insider trading suspect freed on bail

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By The Associated Press
Monday, Nov. 26, 2012, 6:34 p.m.
 

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

Most-Read Stories

  1. Steelers notebook: Adams replaces concussed Gilbert
  2. Steelers use 3 late first-half TDs to stun Texans
  3. Pittsburgh police officers start wearing video cameras
  4. Pa. Congressional candidates hear about wide range of issues, concerns
  5. Natrona Bottling Co. keeps soda pop operation small, putting effort into craft, taste
  6. Fashion designer Oscar de la Renta dies at 82
  7. Kin of 2013 DUI crash victim in Hempfield lose young family in fire
  8. Canon-McMillan takes down No. 7 Norwin
  9. Mt. Pleasant residents voice support for Zilli as borough police chief
  10. Newsmaker: Thomas J. Usher
  11. Proposal to limit access divides Penn Hills, Homewood neighborhoods
Subscribe today! Click here for our subscription offers.