Judge Won’t Keep Martoma Out Of Jail

Oct 22 2014 | 6:37am ET

Former SAC Capital Advisors trader Mathew Martoma’s days of freedom number less than 20, after a federal judge yesterday rejected his bid to remain free while appealing his insider-trading conviction.

U.S. District Judge Paul Gardephe, who presided over Martoma’s trial, said that evidence of his guilt “was overwhelming.” He said that Martoma’s appeal, like those convicted of insider-trading before him, had little chance to succeed.

“None of Martoma’s arguments regarding the sufficiency of the evidence or legal error at trial are persuasive,” he said. “Nor has Martoma articulated any basis for finding that his sentence was procedurally or substantively unreasonable.”

Martoma is due to report to prison to begin a nine-year sentence on Nov. 10. His lawyers have previously pledged to ask a federal appeals court to keep their client free should Gardephe reject the request.

Martoma was convicted in February of what prosecutors called the “most lucrative” insider-trading scheme in history, one which allegedly earned or saved SAC some $276 million. Martoma was found to have traded on confidential information about two pharmaceutical companies.

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