SAC Capital boss's testimony excluded at NY trial

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Associated Press

Posted on January 9, 2014 at 5:01 AM

NEW YORK (AP) — A New York judge presiding over an insider trading trial says billionaire Steven A. Cohen's testimony to a financial regulatory agency cannot be shown to jurors.

U.S. District Judge Paul Gardephe's (GAHR'-duh-feez) decision regarding the founder of Stamford, Conn.-based SAC Capital Advisors came as a jury was being selected Wednesday at the trial of Mathew Martoma.

Martoma is accused of persuading a medical professor to leak secret data from an Alzheimer's disease trial. The Boca Raton, Fla., resident has pleaded not guilty.

Martoma's lawyers wanted to use Cohen's testimony to show Cohen didn't use Martoma's information to make pivotal trades. Prosecutors say Martoma's tips helped SAC earn a quarter-billion dollars illegally.

The judge says the Securities and Exchange Commission's inquiry was fact-finding and irrelevant for the criminal trial.

SAC Capital has pleaded guilty to fraud charges.

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