Insider Trading Defendant Was Expelled From Harvard
The federal judge presiding over the Manhattan insider trading trial of former SAC Capital Advisors portfolio manager Mathew Martoma has unsealed evidence that Martoma had been expelled from Harvard Law School.
In a brief order Thursday, Southern District Judge Paul Gardephe (See Profile) unsealed papers filed in the case last month, including the government's motion to admit that the law school expelled Martoma in 1999.
Martoma allegedly falsified his Harvard transcripts and included them in clerkship applications submitted to 23 federal appellate judges around the country. Then, according to the Southern District U.S. Attorney's Office, Martoma lied about the forgeries to the law school's administrative board, and even submitted forensic evidence generated by a company he had secretly created himself.
Mortoma went by Ajay Mathew Thomas at Harvard but changed his name after he was expelled.
Martoma's lead lawyer, Goodwin Procter's Richard Strassberg, asserts that the government should be barred from introducing the Harvard-era material, which could be used to argue that Martoma knew how to cover his tracks. Prosecutors allege that Martoma used inside information about a clinical drug trial to help make $276 million in illegal trades while at SAC.
According to the defense, the government hopes that the newly-unsealed material will serve as a "sword of Damocles," preventing Martoma from taking advantage of prosecutors' lack of certain forensic evidence in the case.
The government is represented by Assistant U.S. Attorneys Arlo Devlin-Bron and Eugene Ingoglia. Opening statements were scheduled for Friday.