SAC's Martoma tried to cover up fraud at Harvard, documents show

Thu Jan 9, 2014 5:45pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Nate Raymond and Joseph Ax and Emily Flitter

NEW YORK (Reuters) - Years before he was accused of insider trading, former SAC Capital Advisors portfolio manager Mathew Martoma forged a Harvard transcript, falsified an email, and created a dummy forensic computing company to try to cover his tracks, according to a court document unsealed on Thursday.

Martoma was eventually expelled from Harvard Law School over the incident, according to the document, which began with his forging a Harvard transcript to submit an application for a clerkship.

The revelations, which date back to 1999, came as government and defense lawyers prepared to make their opening statements in Martoma's high-profile insider trading trial on Friday.

Martoma's lawyers on Thursday lost a battle to keep the facts surrounding Martoma's expulsion from Harvard Law out of his insider trading trial.

News of Martoma's Harvard troubles came to light in two orders issued by U.S. District Judge Paul Gardephe in which he said documents related to a disciplinary proceeding against Martoma in 1999, while he was a student at Harvard, should be unsealed.

Martoma's lawyers had fought all the way to the 2nd U.S. Circuit Court of Appeals to keep the papers secret, arguing he would suffer embarrassment and his right to a fair trial would be violated. The 2nd Circuit denied his appeal Wednesday.

Lou Colasuonno, a spokesman for Martoma, declined to describe the event at Harvard, but said it occurred 15 years ago and has no bearing on the case.

"Raising it now is a transparent effort by the government to unduly influence the ongoing court proceedings," Colasuonno said.   Continued...

Former SAC Capital portfolio manager Mathew Martoma (C) arrives at the Manhattan Federal Courthouse with his lawyer in New York, January 7, 2014. REUTERS/Brendan McDermid