Monday, January 6, 2014

Largest Insider Trade Trial vs SAC Trader Begins

Jury selection in the prosecution of Matthew Martoma, the ex-SAC portfolio manager, is set for tomorrow. He is accused of benefiting the hedge fund by $276 million in trades of Wyeth and Elan, using secret tips from a doctor supervising trials of an Alzheimer’s drug.

The U.S. said SAC reversed a bullish stance on the drugmakers, liquidating a $700 million position and selling the stocks short a few days after a 20-minute phone call between Martoma and Cohen in July 2008. 

Having refused to cooperate, Martoma now faces trial for what the government claims was the biggest illegal trade in U.S. history. J Pressure on Martoma, 39, to cooperate with the probe included an approach by agents of the Federal Bureau of Investigation that made him faint in his own front yard, and an indictment unsealed in 2012 on the Friday before Christmas.

A steady drumbeat of convictions of insider traders in the probe, including SAC portfolio manager Michael Steinberg last month, may have further ratcheted up the pressure ahead of the trial this week in Manhattan federal court.

 For more information - N.J. doc's testimony expected in landmark insider trading trial against ex-SAC portfolio manager |

The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions and insider trading trials. We represent investors, financial professionals and investment firms and brokers nationwide. For more information contact Mark Astarita at 212-509-6544 or at email us
Enhanced by Zemanta