Ex-SAC Manager Martoma Pleads Not Guilty to Insider Trading

Gavel

Mathew Martoma, the former SAC Capital Advisors portfolio manager charged in what prosecutors called the biggest insider trading scheme in history, pleaded not guilty to criminal charges.

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.

Hit the link below to access the complete Bloomberg article:

Ex-SAC Manager Martoma Pleads Not Guilty to Insider Trading

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