SAC's Martoma wins delay of nine-year insider trading prison term
By Nate Raymond
NEW YORK (Reuters) - Mathew Martoma, a former portfolio manager at billionaire Steven A. Cohen's SAC Capital Advisors LP hedge fund, won an order Tuesday to delay the date he would begin serving a nine-year prison term for insider trading.
The 2nd U.S. Circuit Court of Appeals in New York agreed to delay Martoma's surrender date past Nov. 10 until after an appellate panel had considered his motion for bail pending appeal.
The decision came after Martoma, 40, hired a prominent lawyer, Paul Clement, to urge the court to consider his bail request after U.S. District Judge Paul Gardephe in Manhattan rejected a similar motion last month.
The 2nd Circuit scheduled arguments on Martoma's bail motion for Nov. 12, and directed prosecutors to respond to his request by this Friday.
Richard Strassberg, another lawyer for Martoma, declined comment. A spokeswoman for Manhattan U.S. Attorney Preet Bharara also declined comment.
A jury found Martoma guilty of three counts of conspiracy and securities fraud over a scheme that allowed SAC Capital to make profits and avoid losses of $275 million in trades in Elan Corp and Wyeth.
Martoma, who worked in SAC's CR Intrinsic Investors division, was accused of seeking out confidential information from doctors involved in a clinical trial of an Alzheimer's drug being developed by Elan and Wyeth.
Prosecutors said in July 2008, Martoma received a tip from a doctor about negative trial results for an Alzheimer's drug being developed by Elan and Wyeth. Continued...