Martoma Pleads Not Guilty To Revised Indictment

Former SAC Capital Advisors portfolio manager Mathew Martoma has pleaded not guilty—again—to insider-trading charges.

Martoma was responding to a new indictment against him when he appeared in Manhattan federal court on Friday. The revised charges allege that Martoma sought confidential information about pharmaceutical trials from 20 doctors and got it from at least two, using the tips to earn SAC hundreds of millions of dollars.

The allegations against Martoma are also at the center of the criminal case against SAC itself. Prosecutors may be turning up the heat on Martoma in an effort to win his cooperation in that case, cooperation which he has so far declined to offer.

One of Martoma’s sources, former University of Michigan medical professor Sidney Gilman, has admitted tipping Martoma and is cooperating with prosecutors.

In the superseding indictment, prosecutors said they planned to seek forfeitures of between $9.3 million and $13.7 million from Martoma.