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Disgraced SAC Capital Trader Once Disgraced Harvard Law Student

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Before Mathew Martoma was (allegedly!) telling Steve Cohen to dump large positions in Elan and Wyeth based on inside information he received from a doctor involved in clinical trials of an Alzheimer's drug, he was making fake transcripts of his grades at Harvard Law School.

Mr. Martoma’s lawyer had sought to keep evidence of the grade tampering under wraps, but the judge presiding over the insider trading trial of the former hedge fund trader on Thursday ordered court papers discussing his expulsion to be unsealed. The court papers in the case have not yet be unsealed, according to the federal court’s electronic docketing service. But a summary on the court docketing system known as a Pacer said the unsealed court papers would discuss a law school disciplinary proceeding involving Mr. Martoma. There was no mention in the summary of Mr. Martoma’s expulsion from law school or what the disciplinary matter involved.

According to Martoma's spokesman, the grade tinkering represents nothing more than a youthful indiscretion that has no place in this court room. In fact, he doesn't even want to hear the words "Harvard Law School" anymore. Starting now.

Lou Colasuonno, a spokesman for Mr. Martoma, said: “This event of 15 years ago is entirely unrelated to, and has no bearing on, this case.” He added that the prosecution, in raising the issue, is trying to “unduly influence the ongoing court proceedings.”

Ex-SAC Trader Was Expelled From Harvard Law School [Dealbook]


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!