SAC Capital's Martoma's appeal rejected


A FEDERAL Court judge has rejected SAC Capital's Mathew Martoma's appeal against conviction for conspiracy and securities fraud.
District Judge Paul Gardephe said the trial evidence "overwhelmingly demonstrated Martoma's guilt."
Martoma's jury trial heard SAC Capital made $275 million in profits by avoiding losses in pharma giants Elan Corp. and Wyeth, on foot of non-public information from Dr Sidney Gilman about an ineffective Alzheimer drug trial which weakened Elan's share price when disclosed later.
SAC paid $1.8 billion to settle SEC and Federal criminal and civil charges when the firm admitted insider trading in 2013.
Manhattan U.S. Attorney Preet Bharara has recommended more than the eight year sentence recommended by probation officers for Martoma when his sentencing hearing convenes on 8 September 2014.
Martoma is one of eight ex-SAC employees convicted of insider trading but the trading empire's boss, Steven A. Cohen, has not been criminally charged.
SAC Capital changed its name to Point72 Asset Management and now manages Cohen's family fortune only.
Source: Reuters