Reuters: Regulatory News: UPDATE 1-Trial of SAC's Martoma for insider trading set for Nov. 4

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Trial of SAC's Martoma for insider trading set for Nov. 4 Jun 5th 2013, 23:40 Wed Jun 5, 2013 7:40pm EDT By Bernard Vaughan NEW YORK, June 5 (Reuters) - A federal judge on Wednesday set a Nov. 4 start for the criminal trial of Mathew Martoma, a former portfolio manager at hedge fund SAC Capital Advisors, on insider trading charges. Martoma, one of nine one-time employees of billionaire Steven Cohen's hedge fund named in a government crackdown on insider trading, will be the first to face trial. A trial of SAC fund manager Michael Steinberg, the most senior executive from the firm to be indicted on insider trading charges, starts on Nov. 18. The announcement comes as SAC Advisors faces redemption requests estimated at between $3 billion and $4 billion, according to people familiar with the firm and the hedge fund industry. Cohen has not been accused of any wrongdoing. The firm, based in Stamford, Connecticut, has not commented on the amount of redemptions, which will be paid out by year's end. Jonathan Gasthalter, a spokesman for the firm, declined to comment on Martoma's trial date or the redemptions on Wednesday. In March, SAC agreed to pay $616 million to the U.S. Securities and Exchange Commission to settle allegations of improper trading arising out of an investigation into Martoma. Martoma, a former portfolio manager with SAC, has been charged with conspiracy and securities fraud. He pleaded not guilty in January. Prosecutors say he helped CR Intrinsic Investors, an SAC fund, avoid $276 million in losses in 2008 by recommending that it sell shares of Elan Corp and Wyeth, now owned by Pfizer Inc, based on a doctor's tips about poor drug trial results. Assistant U.S. Attorney Arlo Devlin-Brown told presiding U.S. District Judge Paul Gardephe at a Wednesday hearing that he expected the trial to last two to three weeks. MARTOMA IS DEALT A SETBACK Following the hearing, Gardephe issued a decision that largely rejected Martoma's bid for more details about the government's case, which could help him prepare his defense. Martoma said that while the criminal case focused on alleged wrongful trades in July 2008, prosecutors sought through only "vague" details to link him to an alleged conspiracy dating to 2006. But Gardephe said prosecutors were not obligated to provide everything Martoma requested. "This is not a case in which the government has provided a 'bare bones' conspiracy charge that leaves defendant incapable of preparing for trial," he wrote. At the hearing, Martoma's lawyer Richard Strassberg had asked Gardephe to start the trial in February, in part because he said the government may file a superseding indictment in July adding more details to its charges against Martoma. Strassberg also said he is committed to another trial in September that could take five to six weeks. Gardephe, however, stuck with Nov. 4. "I don't view this as a particularly complicated case," Gardephe said. Gardephe said he would reconsider delaying the trial if Strassberg could later prove he faced "insurmountable difficulties" in preparing Martoma's defense. "I'm not closing the door to a later trial date," Gardephe said. The case is U.S. v. Martoma, U.S. District Court, Southern District of New York, No. 12-cr-00973. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions