Did the revelation that Martoma, who at the time went by the surname Thomas, created fake transcripts and sent them to judges with whom he was seeking clerkships and then tried to pass the whole thing off as a joke that he blamed on his brother, make Martoma/Thomas look bad? You bet. Did the jury nevertheless find him guilty strictly based on the evidence that he convinced a little old man to give him confidential drug trial results and broke a host of securities laws on the way to orchestrating the most lucrative insider trading scheme ever? That’s what people who did graduate from law school are going with: Read more »
Prosecutors Not Interested In Giving Mathew Martoma A Redo Over The Whole Harvard Law Explusion ThingBy Bess Levin
Back in February, a young man named Mathew Martoma (né Ajai Mathew Thomas) was convicted of securities fraud. In addition to the actual act of using material non-public information about drug companies Elan and Wyeth to help out his employer, SAC Capital, in the P&L department, one thing that did not do wonders for Martoma’s case was the revelation that he had been expelled from Harvard Law School in 1999, as even he will tell you. For everything that Martoma is (a white collar criminal, an accomplished dancer), one thing he isn’t is stupid. That’s why when he was applying to Stanford University’s business school in 2001, he opted not to mention the incident at Harvard, probably figuring it would hurt his chances. One thing Martoma did not have the foresight to anticipate was that he would one day be a convicted felon, and, more importantly, that when it comes down to it? NOBODY MAKES A FOOL OF STANFORD. Which is this just happened:
Mathew Martoma, the SAC Capital Advisors LP employee found guilty last month of insider trading, is no longer a graduate of the Stanford Graduate School of Business, the school confirmed Tuesday. Administrators at the business school rescinded their offer of admission to Mr. Martoma, a move that nullifies the degree he earned in 2003, according to people familiar with the matter.
Of course, the university is not totally heartless: it gave Martoma a chance to explain, but evidently 4 weeks is not enough time to come up with a credible story. Read more »
1. He’s not convinced the government proved he committed securities fraud. 2. He feels pretty strongly that the revelation he created fake Harvard Law School transcripts that were accidentally sent to judges, with whom he was seeking prestigious clerkships, made him look bad. Read more »
So, the insider trader formerly known as Ajai Mathew Thomas has been convicted of said insider trading, just like everyone else who’s been charged with it in the last five years. But forget this nobody grain of sand. How does it impact his former boss and conversation partner?
Answer: Probably not at all.
From a public relations standpoint, his conviction signifies another blow for Cohen, who had already been forced to drop all of his clients in converting SAC Capital into an investment vehicle for his $9 billion fortune.
Unless prosecutors leverage yesterday’s verdict to convince Martoma to turn against his former boss, however, his conviction is likely to have little bearing in their on-going pursuit of Cohen.
[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]