Wednesday, 17 December 2014
Last updated 5 hours ago
Dec 18 2013 | 12:21pm ET
Former SAC Capital Advisors trader Mathew Martoma will face all three insider-trading charges against him—and in full—at his trial next month.
U.S. District Judge Paul Gardephe yesterday rejected a motion from Martoma's lawyers to dismiss one of the two securities fraud allegations against him and to cut back on the related conspiracy charge. Martoma's legal team cited a 2010 U.S. Supreme Court ruling that U.S. securities laws do not cover transactions on foreign exchanges.
One of the companies Martoma is accused of illegally trading is Elan Corp., an Irish pharmaceutical company.
But, Gardephe noted, Martoma traded Elan American depositary receipts traded on the New York Stock Exchange. "The formation of contracts for those trades, the passing of title to those securities, and the incurring of liability on the part of sellers and purchasers of those ADRs occurred in the United States," the judge ruled.
Martoma's trades in Elan and Wyeth LLC were based on tips from Sidney Gilman, a doctor overseeing drug trials for the companies, according to prosecutors. The trades allegedly earned or saved SAC a combined $276 million.
Martoma's trial is set to begin on Jan. 6.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.