Mathew Martoma’s best hope of staying out of prison may be persuading a federal appeals court that he should have been permitted to introduce the deposition testimony of his former boss, Steven A. Cohen, at his insider trading trial earlier this year. A three-judge panel of the United States Court of Appeals for the Second Circuit in New York seized on that line of argument at a hearing on Wednesday morning to determine whether Mr. Martoma should be allowed to remain out of prison on bail pending an appeal of his conviction in one of the largest insider trading cases ever. Mr. Martoma, 40, was sentenced in September to nine years in prison, after his conviction on charges that he helped Mr. Cohen’s former hedge fund, SAC Capital Advisors, avoid losses and generate profits totaling $275 million in the summer of 2008. Mr. Martoma, a married father of three young children, had been scheduled to report to prison on Monday, but an appellate court granted his request to hold a hearing to determine whether he should remain free on bail.
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.