Wednesday, 22 February 2017
Last updated 10 hours ago
May 22 2013 | 11:35am ET
Former SAC Capital Advisors trader Matthew Martoma's lawyer says that prosecutors are attempting to "have it both ways" in their insider-trading case against him.
The government has provided specific information about its allegations covering only Martoma's alleged illicit trading on tips about an Alzheimer's drug trial in 2008, Richard Strassberg wrote in a court filing on Monday. But they accused him of being part of a conspiracy that began in late 2006.
"The result is that the government proclaims its allegations are narrow and that it need only particularize the limited information relevant to July 2008, but simultaneous accuses Mr. Martoma of much more extensive conduct that it argues it need not particularize because it does not constitute standalone instances of insider trading," Strassberg wrote.
Martoma is accused of trading shares of two pharmaceutical companies based on tips about the trials he received from a medical professor overseeing them. Prosecutors have called the scheme, which generated some $276 million for SAC, the "most lucrative" insider-trading job in history.
Martoma's allegedly illicit trades are at the center of SAC's current troubles. The hedge fund has already agreed to settle Securities and Exchange Commission charges stemming from the Martoma case for $602 million, and prosecutors are mulling criminal charges against the firm.