SAC Capital alums

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 Administrators at the business school rescinded their offer of admission to Mr.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 »

Richard Lee, the ex-SAC Capital trader who pleaded guilty to insider trading last week, was fired from a rival hedge fund over a bonus-boosting scheme that was uncovered his first day in a new job, The Post has learned. Lee was ousted from Ken Griffin’s $15 billion Citadel Investment Group in 2008 for fiddling with the trading books in a ploy to pump up his payout, sources said. What’s more, it happened during Lee’s first few hours as head of Citadel’s value special situation team, which focused on mergers, according to sources. Lee never made it to a second day. Citadel accused him of pulling profits from other trading groups to boost his own performance numbers, a source said. The 34-year-old Lee, a graduate of Brown University who lives on Chicago’s tony Gold Coast, had been promoted to head of the trading group after the former chief left in March 2008. Citadel has programs to track such changes and Lee was caught within “three hours,” sources said. In a statement, Citadel hinted at the reason for Lee’s firing, saying he “transferred positions” in such a way that it “would have impacted only his potential future compensation.” [NYP]

Earlier today, former CR Intrinsic employee Mathew Martoma made an appearance in federal court re: the matter of his being charged with insider trading during his time with the SAC Capital unit. The hearing was merely to set the terms his bail– lenient enough that they allow him to travel throughout Massachusetts, New Jersey, Florida, and parts of New York, though not so generous so as to allow for visits with old friends in the Nutmeg State– with a follow up meeting with the Judge James Cott set for December 26th. Joining Mathew at the courthouse today was his wife, Rosemary, and while we expected brave faces and a united front from the couple, we didn’t expect smiles and jokes for the cheap seats. Read more »

Former SAC Capital Advisors LP portfolio manager Mathew Martoma, charged in what prosecutors called the biggest-ever insider trading case, appeared in federal court in New York…He was arrested at his Boca Raton, Florida, home Nov. 20 and freed on $5 million bond. He appeared today before U.S. Magistrate Judge James Cott in Manhattan. The defense and prosecution today agreed to a modified bail package under which the $5 million bond must be secured by $2 million in cash or property, as well as signatures from three instead of two financially responsible people. Martoma has surrendered his and his children’s travel documents. He’s limited to Florida, Massachusetts, New Jersey and parts of New York. [Bloomberg]

Dear Ping Capital Investors And Other Interested Parties

January performance means a lotta salsa victory dancing going on at the office today. Read more »