SAC Capital alums

Former SAC Capital Advisors LP chief operating officer Solomon “Sol” Kumin is close to lift off with the launch of a roughly $1 billion hedge fund. Mr. Kumin’s Folger Hill Asset Management LLC has raised about $1 billion as it looks to start trading in March, a person familiar with the firm said. His new employees include Lisa Baroni, a former U.S. Attorney who helped prosecute the Bernard Madoff Ponzi scheme. Ms. Baroni will head compliance for the new firm. [WSJ]

steve cohenObviously the caveat here is that you probably can’t have been convicted of securities fraud but hey, at this point, it’s better than one would’ve expected*! (*What one would’ve expected, obviously, is that having SAC on your résumé would be like having a giant scarlet ‘S’ on your chest.) Read more »

michaelsteinberg1Last December, SAC Capital portfolio manager Mike Steinberg was found guilty on one court of conspiracy and four counts of securities fraud. In May, he was sentenced to 3.5 years in prison, despite asking for leniency on account of the fact that he once raised money for a friend’s organ transplant with a bake sale. So, you might expect a guy in his position to be feeling pretty glum these days and pretty pessimistic about his prospects, particularly those of the professional variety. Yet, on the contrary, Steinberg is actually exhibiting signs of a man not just walking on sunshine but downright bullish about his career trajectory. In addition to appealing his sentence, the ex-SAC manager is already making plans to dive back into the investing game, ASAP. Read more »

  • 21 Nov 2014 at 3:12 PM

Mathew Martoma Is In Miami

martomaUnfortunately, this is a business, not pleasure trip: yesterday marked Day 1 of 3,285 of his sentence for orchestrating the largest insider trading scheme ever. Read more »

  • 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 »

As you’ve probably heard, yesterday afternoon Mathew Martoma née Thomas was sentenced to 9 years in prison for orchestrating “the most lucrative insider trading scheme ever” during his time at SAC Capital. Understandably upset and perhaps having also read the civil complaint in which their son’s boss was identified as “Portfolio Manager A,” mom and dad had this to say:

Speaking on the sidewalk outside the old federal courthouse in Lower Manhattan, Mr. Martoma’s parents said he had been wrongly convicted. The couple asked why Mr. Martoma’s former boss, Steven A. Cohen, the billionaire investor who founded SAC, was not also charged with insider trading if their son had done something wrong.

And also:

“…the man who made all the money is on a yacht, my son is going to jail.”

While there is obviously a touch of bias involved here, these statements seem relatively reasonable, whereas the arguments offered for why Martoma/Thomas was found guilty… Read more »

Mathew Martoma, he of the “most lucrative insider-trading scheme in history” Martomas, is going to jail for a while, though for less time than the government wanted. Read more »