A judge in Manhattan froze the Florida home and other assets of former SAC Capital Advisors LP manager Mathew Martoma, who is charged in a $276 million insider trading case.
The U.S. claims the assets, including Martoma’s $1.9 million Boca Raton home and more than $4 million in accounts held by Martoma and his wife, were derived from the alleged crime. The government is seeking forfeiture if Martoma is convicted.
Prosecutors and lawyers representing Martoma agreed to the order, which bars him from transferring the property while the case against him goes forward. U.S. District Judge Paul Gardephe signed the order today.
The U.S. claims Martoma used inside information from two doctors who were involved in the clinical trial of the Alzheimer’s disease drug bapineuzumab, or “bapi,” to trade in shares of Elan Corp. and Wyeth on behalf of SAC, the hedge fund company founded by Steven A. Cohen. The government has called it the biggest criminal insider-trading case against an individual in history.
Martoma was paid a $9.3 million bonus tied to the illegal trades, prosecutors claim. SAC, based in Stamford, Connecticut, was indicted in July, partly because of Martoma’s alleged illegal trading.
Martoma has pleaded not guilty. His trial is scheduled to begin Nov. 4. Richard Strassberg, Martoma’s lawyer, has asked Gardephe to delay the trial until February. Gardephe may rule on the request this afternoon at a conference in the case. Strassberg is currently involved in a trial that started today, of U.S. fraud claims against Bank of America Corp.’s Countrywide unit.
According to court records, Gardephe has a Nov. 4 trial scheduled in a suit in which one of the defendants is Stephani Germanotta, who is better known by her stage name, Lady Gaga.
The case is U.S. v. Martoma, 12-cr-00973, U.S. District Court, Southern District of New York (Manhattan).