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
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Walking Is Superfood For Fitness; Celebrities Who Walk For Health
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
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
- Forget Nexus 6 Release Date, Android Phones Will Soon Showcase Pure Google Apps & Features
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- $249.99 Motorola Moto 360 Smartwatch's First Promo Out; 'Stone Leather' Replaces 'Gray Leather' - Available In BestBuy [Watch Video]
- BlackBerry Passport Sold Out As Preorders Reached 200,000
- iOS 8 And iOS 8.0.2 Security Flaw Revealed, Anyone Can Easily Bypass Touch ID And Passcode Security Features
- Australia Cracks Down On International Money Laundering Syndicate