New York : An Indian-origin former hedge fund portfolio manager will face trial in a federal court here for allegedly participating in one of the “most lucrative” insider trading schemes worth USD 276 million involving information about clinical trials for an Alzheimer’s drug. Mathew Martoma, 39, has pleaded not guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud. The trial is scheduled to begin today in the federal district court in Lower Manhattan, with 80 potential jurors filling out questionnaires to determine whether they can be fair. A jury of 12 with four alternates will hear the case. Martoma, the son of Indian immigrants, faces as many as 20 years in prison on the securities fraud charges and five years on the conspiracy charge if convicted. Manhattan’s India-born top federal prosecutor Preet Bharara, who had brought the case against Martoma, described the charges as “the most lucrative insider trading scheme ever charged”.
Martoma was arrested in November 2012 from his home in Boca Raton, Florida and has been freed on a USD five million bail. A Stanford graduate, Martoma joined the hedge fund company SAC Capital Advisors in 2006 and had worked with the firm’s affiliate CR Intrinsic Investors. The trial, which is expected to last nearly a month, will shed light on any role SAC founder Steven Cohen has in the trades at the center of the cases, reports PTI.