Former SAC Fund Manager Has Bail Set at $5 Million
Former hedge fund portfolio manager Mathew Martoma will have to put up $5 million bail to remain free on insider trading charges.
Federal regulators says the insider trading scheme netted $276 million for Martoma's former firm, CR Intrinsic, a unit of SAC Capital.
The 38-year old former fund manager appeared in federal court with his wife at his side, six days after his arrest in Florida on securities fraud and conspiracy charges.
Prosecutors allege that Martoma obtained inside information on a pivotal Alzheimer's drug trial for a treatment under development by Elan and Wyeth Phramaceuticals . (Wyeth is now owned by Pfizer.)
Martoma's $5 million bond must be secured by three signatories, and $2 million in cash or property. He has surrendered his passport and will be restricted to travel to in New York, New Jersey and to his homes in Florida and Massachusetts.
He is scheduled to be back in court for a preliminary hearing December 26th, if he is not formally indicted by a grand jury first.
-By Bertha Coombs