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Ex-SAC Analyst Spared Prison, Still Faces The Wrath of Cohen

Take note, insider-traders and those who might be accused of it in spite of their innocence: If you wear a wire and you don't have to go to jail. Wesley Wang, the former SAC analyst who helped convict one former boss and is probably helping to build cases against his bosses at SAC and Trellus Management, will get to keep doing so from the comfort of his northern California home.
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Take note, insider-traders and those who might be accused of it in spite of their innocence: If you wear a wire and finger every single person you've ever known, you don't have to go to jail.

Wesley Wang, the former SAC analyst who helped convict one former boss and is probably helping to build cases against his bosses at SAC and Trellus Management, will get to keep doing so from the comfort of his northern California home.

A former hedge fund consultant who cooperated with the government's sprawling insider trading probe was sentenced to two years probation on Wednesday by a federal judge.

U.S. District Judge Jed Rakoff sentenced Wesley Wang in an afternoon proceeding during which the judge said, "the extent of Mr. Wang's cooperation goes beyond that of most cooperators."

SAC would not comment. Previously, the firm hasn't been shy about tarring the not-insignificant number of alumni who've pleaded guilty to—or been found guilty of—insider trading. Is The Big Guy's silence another disturbing sign of the kinder, gentler SAC? Or is he saving them for a private moment with ol' Wes, perhaps when the latter is hanging upside-down over a large body of water with something heavy chained to his feet, to drop his own hint to Mathew Martoma?

Former SAC analyst who cooperated with probe gets probation [Reuters]
Former Hedge-Fund Consultant Avoids Prison Time After Aiding Insider Probe [WSJ]
Ex-SAC Analyst Gets Two Years' Probation in Insider Case [Bloomberg]
Message to Mathew Martoma: SAC analyst Wesley Wang, who helped government with insider trading probe, gets only two years probation [N.Y. Post]

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Doctor Who Tipped Off SAC Manager Wasn't Conspicuous About His Wealth Except When He Was Telling Strangers On Planes About All The Fancy Hotels And Limo Rides Insider Trading Afforded Him

As you may have heard, in addition to the salary he was paid by the University of Michigan, Dr. Sidney Gilman made about $100,000/year through his side-gig advising "a wide network of Wall Street traders."  That network included included Mathew Martoma, recently charged with running “the most lucrative insider trading scheme ever,” based on the information he received from Gilman, who made it a habit of leaking highly confidential information to the former SAC Capital employee. While most people that engage in fraud can't help but spend their ill-gotten gains in a flashy way that attracts unwanted attention (expensive cars, private jets, chinchilla fur coats) the Times reports that Sid Gilman's supplementary income "was not readily apparent in his lifestyle in Michigan." For instance, no second home and no bragging to his colleagues about his life on Wall Street. Still, on at least one occasion, the doctor couldn't help but let the underage girl sitting next to him on a flight home know that she was in the presence of a BSD.

The Feds Are Struggling To Understand Why Mathew Martoma Won't Just Turn On Steve Cohen Already, God Damn It

"We have been remarkably successful in convincing persons to cooperate with the government, and provide evidence to us, and in court of law," SEC director of enforcement Robert Khuzami said during a press conference the day the government went public with its charges of insider trading against former SAC Capital employee Mathew Martoma. To the untrained ear, Khuzami probably appeared to be speaking to no one in particular, just sending a general message to any would-be criminals out there that once the government got to their co-conspirators, it'd be all over. No one wants to do time, and everybody flips. To those who've been following Operations Perfect Hedge, though, and have watched the Feds' relentless pursuit of Steven A. Cohen,  it was obvious they were sending a clear message to the Big Guy: "We got ya boy, and ya goin' down." And since its track record of getting people to turn on their colleagues and in some cases, their best friends (see: Noah Freeman/Donald Longueuil, and these guys, and these guys, and this guy) really has been "remarkably successful," and since Martoma has a wife and two young kids and his whole life ahead of him, Khuzami and Co. probably assumed they had this one in the bag. But not so.

Things Could Be Worse But They Could Also Be Better At SAC Capital Right Now

The good news, if you are Mr. Steve Cohen: you were neither charged nor "mentioned by name" in the criminal complaint against your former employee, Mathew Martoma. The less good news: YOU ARE PORTFOLIO MANAGER A. YOU NEVER WANT TO BE PORTFOLIO MANAGER A!

Before They Were Wearing Wires And Trying To Get Each Other To Make Incriminating Statements Re: Securities Fraud, SAC Capital Employees Were Using Threesomes As A Front For Insider Trading

src="https://dealbreaker.com/uploads/2013/05/saccapitalstamford-260x173.jpg" alt="" title="saccapitalstamford" width="260" height="173" class="alignright size-medium wp-image-102764" />Remember Noah Freeman and Donald Longueuil? Former SAC Capital portfolio managers and best buds, fired from SAC for performance and later confronted by the Feds, who divided and conquered the duo by convincing Freeman to record his conversations with Longueuil, which didn't come of much until Noah got Don to give a step-by-step guide to destroying evidence of wrongdoing? Longueuil is set to be released from prison in December and Freeman, who once ran around San Francisco in his underwear while tripping on 'shrooms and shouting "I said buy, motherfucker" at no in particular, is awaiting sentencing. But before they put all this behind them and move on with their lives (Don is taking a three-week honeymoon in January; Noah has hundreds more cities to traipse through half-naked), how about one last trip down memory lane? This one is courtesy of Vanity Fair from a larger article about D&N's boss, and involves the kind of cover for their illegal activities that'd make Ping Jiang curse the fact that their time at SAC didn't overlap.