Friday, 1 July 2016
Last updated 13 hours ago
Feb 5 2014 | 9:35am ET
Jurors failed to reach a verdict on former SAC Capital Advisors portfolio manager Mathew Martoma in their first day of deliberations yesterday.
U.S. District Judge Paul Gardephe handed the case to the panel of seven women and five men following more than four weeks of testimony. Martoma is accused of trading on confidential information about an Alzheimer's drug trial, earning or saving SAC $276 million.
The jury heard closing arguments on Monday, with prosecutors citing an "avalanche of evidence" and Martoma's lawyers attacking the credibility of the government's star witness, Sidney Gilman. Gilman, a former medical professor at the University of Michigan, testified that he passed secret information about the drug test to Martoma, but also acknowledged some gaps in his memory, which he said had evolved.
As the jury left the courtroom to begin to weigh her husband's fate, Martoma's wife, Rosemary, began to cry, and was escorted out by the defendant.
The jury sent Gardephe one note after beginning deliberations, asking a question about an element prosecutors must prove to establish insider-trading. Deliberations will resume this morning.
If convicted, Martoma faces decades in prison. To date, no defendant charged in the government's recent insider-trading crackdown has won an acquittal.