insider-trading


[via The Chronicle]

No word yet from the Stanford Daily, from which Martoma received his MBA after the misunderstanding re: fake and real transcripts at Harvard Law.

Jurors in Manhattan have reached a guilty verdict in the insider-trading trial of Mathew Martoma, the former SAC Capital Advisors LP portfolio manager accused of insider trading. The jury said Martoma used inside tips on trades that earned SAC $275 million. [WSJ, earlier]


[via @MatthewGoldstein26]

  • 03 Feb 2014 at 3:50 PM

Start Working On Your SAC Capital Eulogies Now

We knew that our time was limited but it wasn’t until this morning that we found out how limited: according to Dealbook, SAC Capital as we know it will cease to exist come mid-March, at which point the firm take on a new name, streamline its “legal entities,” and add a layer of middlemen whose purpose is to make it more difficult for traders to get face time with the Big Guy. Read more »

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]

81-Year-Old Neurologist Proposes Theory Of Memory Evolution

Sidney Gilman—Alzheimer’s specialist, former University of Michigan medical professor and confessed provider of confidential information to the hedge-fund set—used his final moments on the witness stand to offer one more contribution to science. Read more »

Not sure why it would come as much of a surprise that a person who almost successfully conned his way into a prestigious clerkship and then entirely successfully got himself admitted to Stanford Business School despite an expulsion from Harvard would have a complete understanding of basic securities laws, but here you go: Read more »