Mathew Martoma, the former SAC Capital Advisors LP portfolio manager charged in what prosecutors say is the biggest insider-trading scheme in history, will get documents from the U.S. Securities and Exchange Commission in its related civil case, a judge ruled.
U.S. District Judge Victor Marrero today agreed to Martoma’s request to get evidence from the SEC while the criminal case goes forward. Marrero denied, for now, Martoma’s request to take pretrial testimony from witnesses.
Martoma’s new lawyer, Richard Strassberg, making his first court appearance for his client today, complained to Marrero that the SEC’s attempts to delay the case were unfair.
“The SEC chose to file this case, it had a press conference where it attacked Mr. Martoma and it attacked his actions, but now they come to court and say ‘Wait,’” Strassberg told the judge. “It’s really an unfair position to be taking.”
SEC lawyer Charles Riely said the agency has evidence from CR Intrinsic, the unit of Stamford, Connecticut-based SAC that employed Martoma, drugmaker Elan Corp., whose stock Martoma is charged with trading in illegally, and other third parties including telephone companies. In paper form, the evidence would more than fill a conference room, Riely said.
“We did choose to bring this case and it’s our statutory duty to enforce securities laws,” he told Marrero.
Martoma wasn’t present at today’s hearing. His wife, Rosemary Martoma, watched from the front row of the public gallery.
U.S. District Judge Paul Gardephe, who’s overseeing the criminal case, has scheduled a court conference June 5 in which he may set a trial date.
The civil case is SEC v. Martoma, 12-cv-08466; and the criminal case is U.S. v. Martoma, 12-00973, U.S. District Court, Southern District of New York (Manhattan).