According to Dealbook, the government wants 8+. As previously discussed, Martoma and his lawyers do not want a sentence even approaching that length of time, and have so far put forth the argument that it should be a lot fewer years because the ex-trader employee was only responsible for $49 million out of the $276 million SAC Capital made based on inside information about Elan and Wyeth. Read more »
Prosecutors, Mathew Martoma Not Yet Seeing Eye To Eye On Number Of Years One Should Spend In Prison For Insider TradingBy Bess Levin
Mathew Martoma’s Lawyers Granted 7 Extra Weeks To Come Up With List Of Good Reasons Client Shouldn’t Do Too Much TimeBy Bess Levin
So far the defense team has only one (Martoma was only responsible for $49 million out of the $276 million SAC Capital made based on inside information about Elan and Wyeth) but by late July? Hoo-boy, you just wait. It’ll be a regular BuzzFeed article up in that courtroom (20 Reasons Why Mathew Martoma Should Serve Far Fewer Years Than The Government’s Recommended Sentence). Read more »
The sentencing of former SAC Capital Advisors LP hedge fund manager Mathew Martoma, who faces what may be the longest insider trading prison-term in history, will be delayed following a defense request for additional time, a court clerk said. Martoma, 40, was convicted in February in what prosecutors have called the biggest insider trading scheme ever by an individual. He could face almost 20 years in prison for trading on illegal tips about an Alzheimer’s drug made by Elan Corp. and Wyeth LLC that gained SAC $276 million and earned him a $9.3 million bonus. Martoma’s lawyers requested in a letter to U.S. District Judge Paul Gardephe last week that the June 10 sentencing be postponed for more than a month, citing a late report by the court’s Probation Department. [Bloomberg]
Prosecutors Not Interested In Giving Mathew Martoma A Redo Over The Whole Harvard Law Explusion ThingBy Bess Levin
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 »
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 »
he's gonna blow!
Over at Dealbook today you will find an article by Matthew Goldstein and Alexandra Stevenson that takes stock of the government’s futile attempts to ensnare hedge fund manager Steve Cohen, in the wake of last week’s guilty verdict against one of his former traders, Mathew Martoma. According to Martoma’s attorney, his client was but a pawn/grain of sand in the Feds’ quest to nail Cohen for insider trading. While the conviction of Martoma was a win for Preet Bharara and Co in that it brought their record against accused insider traders to 79-0, things didn’t turn out precisely as they had hoped, as Martoma never turned on Cohen by revealing the damning details of a crucial 20 minute conversation the two had over the phone, before SAC began dumping its shares of Elan and Wyeth.
Will Martoma ultimately turn on Cohen in an effort to receive a more lenient sentence? It’s possible, though somewhat unlikely, as 1) He hasn’t up to this point and 2) His “testimony is not worth much to prosecutors now unless he has some email document, or other piece of physical evidence to support any version he would present of his conversation with Mr. Cohen. Plus, the revelations that he attached fake Harvard Law transcripts to his applications for prestigious clerkships did not exactly do wonders for his credibility. Obviously this is good news for Cohen, and adding to the ‘everything is coming up roses for the Big Guy’ column is the fact that, amazingly, people supposedly “still want to work [at SAC.]”
Which brings us to the most important part of Goldstein and Stevenson’s piece: the window it give us into one of the more vital and consequential tasks SAC employees find themselves performing daily: Read more »