Ex-SAC Capital trader has heard they're overturning convictions these days and would like to break himself off a piece of that.
Mathew Martoma, who is serving nine years in prison for carrying out the most lucrative insider trading scheme in history, said he should be freed after an appeals court tossed two other insider-trading convictions. The former portfolio manager for Steve Cohen’s SAC Capital Advisors said in new court papers filed Tuesday that a recent appeals court decision narrowing the definition of insider trading “at the very least… demands a new trial.” Martoma is one of a handful of inside traders who are appealing their convictions based on the stricter standard. He is also the most profitable, helping SAC avoid losses and generate $275 million in profits during the summer of 2008, prosecutors said. Martoma, who has spent the past six months in federal prison in Miami, was also ordered to pay $9.3 million, the size of his bonus the year the trades were made. But Martoma’s lawyers say the evidence doesn’t hold up based on an appeals court ruling that raised the bar for prosecutors and set a new standard for illegal trading...In his appeal, Martoma’s lawyers also claimed racial bias because the only Indian in the jury pool was kicked out by prosecutors. Martoma is of Indian descent.