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SAC Capital Alum Will Do 9 Years For Trading On Material Non-Public Information

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Mathew Martoma, he of the "most lucrative insider-trading scheme in history" Martomas, is going to jail for a while, though for less time than the government wanted.

Martoma, 40, convicted of making $275 million for SAC by using illegal tips to trade in Elan Corp. and Wyeth LLC, rejected government offers of leniency in exchange for his cooperation in the probe of Cohen and his Stamford, Connecticut-based hedge fund.Martoma was the last of seven former analysts and fund managers from the firm to be convicted, closing a chapter in the pursuit of Cohen by Manhattan U.S. Attorney Preet Bharara. The SAC investigation was part of a larger government crackdown on insider trading at hedge funds including Galleon Group LLC, co-founded by Raj Rajaratnam...U.S. District Judge Paul Gardephe, who handed down the sentence today in Manhattan federal court, ruled earlier that nonbinding guidelines called for a term of more than 15 years to almost 20 years based on the amount of illicit profit, a term he said today was “far more than necessary.”

Ex-SAC Fund Manager Martoma Sentenced to Nine Years in Prison [Bloomberg]