Ex-SAC Manager Martoma Changing Lawyers in Insider Case
Mathew Martoma, the former SAC Capital Advisors LP portfolio manager charged in what prosecutors call the biggest insider-trading scheme in history, will get a new set of lawyers to defend him.
Martoma, 38, who is accused of conspiracy and securities fraud by using inside information about a clinical drug trial to make $276 million for SAC, asked a judge to let the firm Goodwin Procter LLP represent him, Martoma’s former lead attorney, Charles Stillman of Stillman & Friedman, said in an e-mail.
“We wish Mathew Martoma all the best,” Stillman said today in a statement.
Prosecutors claim Martoma traded on tips from a physician who was in charge of monitoring tests of bapineuzumab, or bapi, a drug to treat Alzheimer’s disease. Martoma used the tips to trade in Elan Corp. and Wyeth LLC, the government says.
When Martoma learned the companies would report negative data on the drug, Martoma had a 20-minute phone call with SAC’s founder, Steven A. Cohen, according to the government.
SAC, based in Stamford, Connecticut, began liquidating its $700 million position in Elan and Wyeth the day after the call, the government said. SAC then profited by taking short positions in the stock, prosecutors said.
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