Martoma’s Wife Seeks to Block U.S. Seizure of Home, Money

The wife of insider-trader Mathew Martoma sought to block the government from seizing her share of the couple’s assets, including their Florida home and bank accounts, after his conviction in the most lucrative scheme in U.S. history.

Martoma, a former SAC Capital Advisors LP portfolio manager, was sentenced last month to nine years in prison and ordered to forfeit $9.4 million, including the family’s Boca Raton home and more than $4 million held in three accounts.

Rosemary Martoma today asked a judge in Manhattan federal court to set a hearing so she can prove she has a joint interest in assets prosecutors can’t seize. She’s a former practicing pediatrician who quit when the first of the Martomas’ three children was born in 2005.

Rosemary Martoma “agreed to give up her career, and care for the household and children, based on the promise that she would have equal, joint ownership of all income derived from the defendant’s work outside of the household,” her lawyers said in a court filing today.

Mathew Martoma, 40, was convicted in February of making $275 million for SAC by using illegal tips to trade in Elan Corp. and Wyeth LLC. He had rejected government offers of leniency in exchange for his cooperation in the probe of Stamford, Connecticut-based SAC and its founder, Steven A. Cohen. Cohen has not been accused of a crime.

Martoma is scheduled to report to prison Nov. 10. He’s seeking to remain free while he appeals.

Spouses of white-collar felons often try to claim ownership in marital assets to prevent them from being forfeited to the government. Under a 2009 agreement with prosecutors, Ruth Madoff, the wife of convicted Ponzi schemer Bernard Madoff, was permitted to shield $2.5 million for herself after a judge ordered her husband to forfeit $170.8 billion.

The case is U.S. v. Martoma, 12-cr-00973, U.S. District Court, Southern District of New York (Manhattan).

Before it's here, it's on the Bloomberg Terminal.