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Prosecutors, Mathew Martoma Not Yet Seeing Eye To Eye On Number Of Years One Should Spend In Prison For Insider Trading

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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.

Federal prosecutors are recommending that Mathew Martoma, a former trader who worked for the billionaire investor Steven A. Cohen, be sentenced next month to at least eight years in prison for insider trading, if not significantly more. That would be at the upper end of prison sentences for hedge fund traders convicted of insider trading in recent years, but by no means the stiffest punishment handed down during the long-running investigation. Prosecutors for Preet Bharara, the United States attorney in Manhattan, did not call for an exact sentence in a court filing on Friday. But prosecutors said the severity of Mr. Martoma’s crime warranted a sentence above the eight years recommended by the federal court’s probation department.

Prosecutors Seek Sentence of at Least 8 Years for Martoma in Insider Trading Case [Dealbook]