Ex-SAC manager granted $5 million bail in insider-trading case
By Emily Flitter and Basil Katz | November 27, 2012 4:42 AM EST
A former SAC Capital portfolio manager was released on $5 million bail on Monday after making his first appearance in a New York court on charges of making illegal trades that hedge fund titan Steven A. Cohen personally signed off on.
Mathew Martoma, 38, of Boca Raton, Florida, was charged last week in what U.S. prosecutors called "the most lucrative" insider-trading scheme ever.
Martoma was accused of helping Cohen's firm avoid losses and reap profits totaling $276 million in the summer of 2008 by using insider tips he obtained from a doctor about Elan Corp
Cohen was not charged with wrongdoing, but prosecutors have said in court papers that the "owner" of the hedge fund signed off on Martoma's recommendation to sell the shares of Elan and Wyeth. A spokesman for SAC Capital said last week that "Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government's inquiry."
At Monday's 13-minute hearing in U.S. district court in Manhattan, Martoma spoke only once, answering "yes, your honor" to a judge's question. He did not enter a plea.
Martoma's lawyer, Charles Stillman, last week said that his client was an "exceptional portfolio manager" and he is confident Martoma will be exonerated.
Magistrate Judge James Cott on Monday agreed to a proposed $5 million bail package for Martoma, who has been free on similar bail conditions since making an initial court appearance in a Florida court after his arrest on November 20.
(Reporting By Emily Flitter and Basil Katz; Editing by Steve Orlofsky)
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Prince William & Kate Middleton Boards London Train in Casual Disguise, Royal Couple’s Incognito Plan A Huge Hit [PHOTOS]
- Angelina Jolie & Brad Pitt’s Top Secret Wedding Tramps Jennifer Aniston’s ‘Friends’ Reunion & Pregnancy Talks [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones