SAC Capital alums

  • 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 »

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 »

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]

Mathew Martoma has not had the best luck over the last number of years. First, he was charged with masterminding the “most lucrative insider trading scheme ever,” during his time at SAC Capital. Then, over the course of his trial, it came out that he’d doctored his transcripts while at Harvard Law School, which resulted in his expulsion. Later, of course, a jury found him guilty of securities fraud. And finally, when he was really down, perhaps at the lowest he’d ever been, Stanford’s business school had to go and take away his MBA, to boot. Still, Martoma his hoping his string of bad luck is finally up and is asking a judge to grant him this one thing. Read more »