insider-trading

  • 05 Nov 2014 at 1:17 PM

Mathew Martoma Gets Extra Time On The Outside

mathew-martoma1Former SAC Capital Advisors LP portfolio manager Mathew Martoma won a delay of his Nov. 10 deadline to report to prison to begin a nine-year sentence, while an appeals panel considers whether he may remain free during his challenge to his insider-trading conviction. Martoma, 40, was convicted in February of making $275 million for SAC by using illegal tips to trade in Elan Corp. and Wyeth LLC in what prosecutors called the biggest insider-trading case against an individual. The U.S. Court of Appeals in New York today postponed Martoma’s surrender date until it considers his emergency motion for bail pending appeal. The court has yet to schedule an argument. [BusinessWeek]

  • 21 Oct 2014 at 12:59 PM

Mathew Martoma Still Going To Jail

martomaUnfortunately for the ex-SAC PM, a judge was unswayed by the defense team’s promise to reveal heretofore unknown details re: its client’s innocence. Read more »

  • 16 Oct 2014 at 12:38 PM

Ill-Gotten Gain Watch ’14: Mrs. Martoma

Rosemary, wife of ex-SAC PM Mathew, wants the Feds to keep their mitts off 50% of the marital assets. Read more »

Frank Perkins Hixon Jr, who violated securities laws in the name of love (or something), has begun his sentence. Read more »

Over at the New Yorker today, you will find a long piece exploring the coming undone of the hedge fund formerly known as SAC Capital, now Point72 Asset Management, at the hands of a trader formerly known as Ajai Thomas, now Mathew Martoma. Although nearly a dozen ex-SAC employees have been charged with and convicted of securities fraud over the last several years, it was really the work of work of Martoma, accused in November 2012 of orchestrating “the largest insider trading scheme ever” and found guilty last spring, that was the straw that broke the embalmed shark’s back. Particular details to note:

* While SAC has a history as an extremely cutthroat place to work, where the “down and out” clause means traders are cut loose swiftly and without hesitation, and insults from on high are in no short supply, it was no match for the household of Martoma’s youth, headed by a guy who could teach Steve Cohen a thing or two.

When Martoma’s father first came to America, he was admitted to M.I.T., but he could not afford to attend. He retained a fascination with Cambridge, however, and prayed daily that his oldest son would go to Harvard. Martoma graduated from high school as co-valedictorian, but he ended up going to Duke. Shortly after Mathew’s eighteenth birthday, Bobby presented him with a plaque inscribed with the words “Son Who Shattered His Father’s Dream.”

* Steve Cohen has continued his long and storied tradition of displaying once-living things in boxes at the 72 Cummings Point Road headquarters.

S.A.C. was a notoriously intense place to work. Its headquarters, on a spit of land in Stamford, Connecticut, overlooking the Long Island Sound, are decorated with art from Cohen’s personal collection, including “Self,” a refrigerated glass cube, by Marc Quinn, containing a disembodied head sculpted from the artist’s frozen blood.

* That anecdote that circulating a while back about how Martoma had fainted on his front lawn when approached by the Feds? It wasn’t the mere sight of them, or some sort of line about how they knew he’d been trading on material non-public information that caused him to collapse, but rather this: Read more »

  • 03 Oct 2014 at 10:15 AM

Chiropractics Not As Lucrative As Hedge-Fund Fraud

Robert Buckhannon was doing just fine when he was (allegedly!) ripping investors off to the tune of $45 million. Now that he’s settled for adjusting spinal cords in Las Vegas and Battle Creek, Mich., things have been tougher, even before the prosecutors suggested he pony up 100,000 times what his lawyers say he’s got in the bank. Read more »

  • 30 Sep 2014 at 4:38 PM

SEC Charges Guy With Being Very Bad Roommate

10. Leaves dishes in the sink.
9. Fills DVR with Diners, Drive Ins and Dives and “Save All Episodes” option
8. Brings back strange men he/she met on the corner 5 minutes earlier.
7. Is late with the rent.
6. Eats your food.
5. Leaves Post-it notes on the bathroom mirror that read “Should I deduct $0.75 from your portion of the rent for the shampoo you used this morning?”
4. Repeatedly asks you if your girlfriend is single.
3. Invites the cast of Stomp over for a nightcap when you’ve got a big presentation in the morning.
2. Tells your mother she looks great and asks if she’s had work done since she last visited.
1. Trades on material non-public information you mentioned in passing and in confidence. Read more »

Hint: One’s run by a hot-dog enthusiast and starts with a “P” and ends with an “oint72.” Read more »