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
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
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
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- iPhone 6 Release Date Relevance to iOS Newbies: Specs Meaning, Price Considerations
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- Killer Whales Gobble Japanese Whaling Crew
- The Pirate Bay Releases ‘The Mobile Bay’: Mobile Torrent Download Made Easier but Remains Illegal
- 5 Marketing Nuggets We Can All Learn From Lady Gaga