Martoma, 38, entered the pleas Thursday at his arraignment in Manhattan federal court to one count of conspiracy and two counts of securities fraud. Prosecutors say he used inside information about a clinical drug trial to help SAC make $276m in profits and averted losses through trades in Elan Corp. and Wyeth LLC.
Assistant U.S. Attorney Arlo Devlin-Brown said in court that the government’s investigation is 'ongoing' and the U.S. expects to produce more evidence.
Martoma isn’t discussing a plea deal with the government, his lawyer, Charles Stillman, said outside court.
Prosecutors said in a 12-page indictment filed Dec. 21 that Martoma illegally used tips from a physician who was in charge of monitoring the tests’ safety. Martoma advised a 'hedge fund owner', unidentified in the indictment, to trade in Elan and Wyeth, the government alleged.
A person familiar with the case said Steven A. Cohen, SAC’s founder, is the hedge fund owner referred to.
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