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Mathew Martoma's Parents Raise Some Good, Less Good Points

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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...

“He was framed,” said Lizzie Thomas of her son, Mathew, who was convicted in February by a federal jury in Manhattan. His father, Bobbie Martoma, then added that his son had refused to cooperate with the federal authorities against Mr. Cohen because he did not want to violate the Commandment against “bearing false witness.”

We're not religious scholars, but isn't the bearing false witness commandment about not telling lies about your neighbor? So if Martoma refused to cooperated against Cohen because he didn't want to violate the 9th Commandment, doesn't that mean he didn't want to make up stuff about the Big Guy insider trading?

More importantly, re: the idea of this elaborate framing of Martoma/Thomas: was the "it was a set-up!!" defense also used when the whole fake Harvard Law transcripts business went down? Because it seems possible.

Martoma, SAC Capital Ex-Trader, Gets 9 Years in Prison [Dealbook]
Sheelah Kolhatkr [Twitter]


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.