The hedge fund manager was hoping to have his insider trading conviction overturned, but the High Court upheld a prior ruling that there was enough evidence to establish his guilt, despite claims that the jury was improperly instructed, as reported by Reuters.
At the heart of the appeal was what needs to be proven in order to find someone guilty of insider trading. Martoma, who allegedly received insider tips from a doctor who was also a friend, and his lawyers attempted to argue based on prior precedent that the tip needed to come from someone with whom he had a “meaningfully close personal relationship.” They also claimed there was not enough evidence to prove that the tips were given in exchange for a tangible reward.
He is said to have paid one doctor $1,000 a meeting.
He is serving a nine year prison sentence.
Martoma allegedly made $275 million in illegal profits by using confidential information about an Alzheimer’s drug. It is considered one of the most lucrative insider trading schemes.
SAC Capital, which has since been renamed Point72 Asset Management, pleaded guilty to insider trading-related violations in 2013 and paid a penalty worth $1.2 billion.