Defendent With Much to Lose If Convicted.

[ by Howard Haykin ]

Mathew Martoma was one of many traders who made millions working under Steven A. Cohen at SAC Capital Advisors, while remaining a relative unknown in the public domain.  Martoma joined SAC Capital in 2006.  Like other top traders and fund managers working the firm, Mr. Martoma fed Mr. Cohen some of his best investment ideas - for which he was richly rewarded.   In 2008, the year he participated in the alleged illegal trades, the firm paid Mr. Martoma a $9.3 million bonus.  However, he was fired by SAC Capital in 2010, following 2 years of supposedly subpar performance.

Mr. Martoma lives in Florida with his wife, a pediatrician, and 3 children.  Their Florida mansion is nearly 8,000 sf  Mediterranean-style mansion and is located at the elite Royal Palm Yacht and Country Club.  Martoma graduated from Duke and Stanford B-School.  He's described by a former colleague as low-key and cerebral.

It was at his opulent home in Boca Raton, FL, that Mr. Martoma, 38, was arrested Tuesday on insider trading charges.  He's the 6th former SAC employee to be charged with insider trading;  three were convicted.  At no time, has Mr. Cohen been connected to any illicit activity involving the earlier  cases. 

Yet, in the case against Mathew Martoma, federal prosecutors have circumstantial evidence tying multi-billionaire Steven A. Cohen to the suspect, which is why Mr. Martoma is seen as someone who possibly can deliver Mr. Cohen to the feds.  Mr. Cohen has to date been a highly sought-after, but very elusive, target for the feds. 

Much to Lose if Convicted.   With his charmed life, Mathew Martoma will be pressed to cooperate with prosecutors.  The feds already secured the cooperation of the so-called tippee in this case, Dr. Sidney Gillman.  The feds, to a large extent, have relied on Dr. Stillman to construct their case against Mr. Martoma, and to place increasing pressure on him to cooperate. 

Lawyer for the Defense.   Mr. Martoma has retained the services of Charles A. Stillman.  Mr. Stillman, a founding member of Stillman & Friedman, P.C., has practiced for over 40 years, concentrating in litigation, with a focus on white-collar criminal defense and other regulatory and enforcement matters, as well as complex civil trial and arbitration work.  Mr. Stillman  said on the day of his client's arrest, "What happened today is only the beginning of a process that we are confident will lead to Mr. Martoma's full exoneration."     [ Dealbook, 11/22/12 ]