There’s also Martoma’s relationship with Stephen Chan, who was facing charges that he defrauded financial firms of $12.6 million when they met that year. Chan pleaded guilty to mail fraud and conspiracy and was sentenced to more than four years in prison. FBI agents who approached Martoma at his Florida home in 2011 used Chan’s name as a pretext to talk with him. When they said they really wanted to talk about Martoma’s trades, he fainted. Though that was a ruse, their association, which lasted only a few months, may complicate Martoma’s ability to contest charges that could land him in prison for 20 years. If Martoma takes the stand during the defense case, which may begin today, prosecutors can use his history with Chan as ammunition to attack his credibility…According to Chan, he and Martoma worked out together, practiced martial arts and took dance lessons at the Arthur Murray Dance Studio in Natick, Massachusetts. They had dinner together five or six times a week, Chan said…Lou Colasuonno, a spokesman for Martoma, said the fund manager’s association with Chan and the Harvard matter “was a decade and a half ago and has no bearing on the present case.” While not calling Martoma as a witness limits the government’s ability to impugn his credibility, it also restricts the defense’s power to counter the charges. “It cuts off any avenue by which Martoma can explain himself,” Sabino said. [Bloomberg]

Comments (31)

  1. Posted by guest | January 28, 2014 at 4:28 PM

    Seriously what does Stevie have on him that is worth risking 20 years in the slammer?

  2. Posted by Rossi | January 28, 2014 at 4:29 PM

    I think he will enjoy the dating scene in the hole.

  3. Posted by Guest | January 28, 2014 at 4:29 PM

    Unbelievable. His personal history just gets worse and worse.

    "Just after New Year’s Day 2000, Martoma sued Chan and obtained a restraining order against him. Martoma claimed Chan had kicked him in the stomach, screamed insults and threatened him and his parents. Chan said he didn’t assault or threaten anyone. "

  4. Posted by Guest | January 28, 2014 at 4:40 PM

    Bet Stanford is feeling real good about his attendance there.

  5. Posted by Shaz's beard | January 28, 2014 at 4:46 PM

    They took dancing classes together, they had dinner together 5 to 6 times a week, he fainted when questioned. Going to go out on a limb and say he is going to enjoy his time in the can.

  6. Posted by Guest | January 28, 2014 at 4:51 PM

    Matty was always one of my favorite co-workers.

    -Ping

  7. Posted by Guest | January 28, 2014 at 5:02 PM

    Matty or "Jay Hale?"

  8. Posted by Guest | January 28, 2014 at 5:04 PM

    I thought Martoma's father ran a dry cleaners or something. How did he get $1mm to invest in the computer company?

  9. Posted by guest | January 28, 2014 at 5:06 PM

    what are you getting at?

  10. Posted by J.G. | January 28, 2014 at 5:15 PM

    "And now the matador shall dance with the blind shoemaker!!"

  11. Posted by Whaa | January 28, 2014 at 5:15 PM

    Dry cleaner that specialized in spooge rags.

  12. Posted by Guest | January 28, 2014 at 5:19 PM

    Dad legally changed his name before the son. Safe to assume the apple didn't fall far from the tree.

  13. Posted by Guess | January 28, 2014 at 5:25 PM

    Not getting 20 years. Maybe 5, likely 3. That's vacation time. If he cooperated he'd MAYBE get off completely, blow his new worth on his own lawyer and still be unemployable. Don't cooperate, gets Cohen's lawyer sharks, lighter sentence and obviously still unemployable, but will receive some generous thank you from SC. And it's highly likely all he had on Cohen was hearsay. Enough to ruin Cohen's day but short of the juice the government needs for a conviction.

  14. Posted by Lompoc Wardern | January 28, 2014 at 5:32 PM

    Cohen will not risk compensating him anything ever.

    Obstruction of Justice is far more serious at a federal level and could put him away for good.

  15. Posted by Rajit Gupta | January 28, 2014 at 5:33 PM

    The Indian wing here is really growing into something special,

  16. Posted by Stanford Provost | January 28, 2014 at 5:34 PM

    When diversity goes bad

  17. Posted by guest | January 28, 2014 at 5:34 PM

    you're an idiot.

  18. Posted by guest | January 28, 2014 at 5:35 PM

    ignorant moron says what?

  19. Posted by Guest | January 28, 2014 at 5:38 PM

    Ignorant moran says I can!

  20. Posted by Guest | January 28, 2014 at 5:42 PM

    Just got a visual of Raj slicing garlic with a razor blade. So thin it will dissolve in the pan.

  21. Posted by Guest | January 28, 2014 at 5:43 PM

    Sounds like they were running the business straight from the Power Point handouts from the Learning Annex.

    "The company had a Mercedes Benz and a BMW, she said. Chan would give the employees motivational talks, telling them they’d have to work hard and suffer if they wanted to be successful.

    “If you want this Mercedes Benz, you have to go out and get it,” Pressman said Chan told her. “We were so excited. Then it’s a few months later and we haven’t gotten one phone call from a client?” "

  22. Posted by Paft Dunk | January 28, 2014 at 6:57 PM

    Lose yourself to transcript forgery, if that doesn't trip your trigger, lose yourself to DANCE!

  23. Posted by Guest | January 28, 2014 at 7:55 PM

    Hmmmmmm.. then why didn't the guy cooperate with the Feds? By all accounts, an offer was there to do so.

  24. Posted by Not gay at all guy | January 28, 2014 at 8:38 PM

    Not gay at all

  25. Posted by Softball Pitcher | January 29, 2014 at 6:41 AM

    In Texas, we don't end sentences with a preposition…..

  26. Posted by Washy Washy | January 29, 2014 at 6:42 AM

    Bankers' spooge rags….

  27. Posted by Guest | January 29, 2014 at 9:29 AM

    So what I'm getting from this is that you're a big fan of Berlusconi.

  28. Posted by HighFrequencyHater | January 29, 2014 at 12:08 PM

    Not sure where you're getting the 5-3 front. Where's that fun upside-sentence length regression that dealbreaker made? M is some 250mio deep on that one, so if convicted he'll be on the far end of that chart.

  29. Posted by HighFrequenyHater | January 29, 2014 at 12:11 PM

    More caps than a bar mitzvah

  30. Posted by guasto | January 30, 2014 at 12:31 PM

    bravo ragazzo! like a demented italian geezer oil trader. not that i'm a fan of il cav…

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