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发帖数: 8138 | 1 Former SAC Manager Mathew Martoma Found Guilty in Insider Case
By CHRISTOPHER M. MATTHEWS And JOHN CARREYROU
Updated Feb. 6, 2014 3:49 p.m. ET
Mathew Martoma, a former SAC Capital Advisors portfolio manager, leaves
federal court in New York on Thursday with his wife, Rosemary. A jury
Thursday convicted Mr. Martoma of insider trading. Bloomberg News
A jury found former SAC Capital Advisors LP portfolio manager Mathew Martoma
guilty of insider trading, a verdict that burnishes prosecutors' virtually
flawless trial record in such cases in recent years and could bolster a
related civil case against the firm's founder, Steven A. Cohen.
Mr. Martoma was convicted of taking part in what prosecutors say was one of
the largest insider-trading schemes ever—illegal trades on two
pharmaceutical companies that helped SAC and its traders book profits and
avoid losses worth a total of $276 million. With the win, the Manhattan U.S.
attorney's office has gone 79-0 in securing convictions or guilty pleas in
its recent insider-trading crackdown.
"Cheating may have been profitable for [Mr.] Martoma, but in the end, it
made him a convicted felon," said Preet Bharara, U.S. attorney for the
Southern District of New York, in a statement.
Mr. Martoma looked downcast as the jury read the verdict, while his wife's
eyes welled up with tears. She began crying as he escorted her out of the
courtroom, his arm around her shoulder.
Jurors declined to comment as they filed out of the courthouse.
Who's Who in the SAC Case
Mathew Martoma is the latest former SAC employee to face insider-trading
charges. The firm in November pleaded guilty, capping a multiyear probe.
Law Blog
Is Silence Golden? Whether Defendants Should Testify
Despite the win, prosecutors had hoped, according to people familiar with
the matter, that Mr. Martoma could have given them something that has thus
far eluded them: a witness to directly connect Mr. Cohen to illegal trading.
Prosecutors allege Mr. Martoma personally advised Mr. Cohen on the illegal
trading, and phone and email records show the two were in contact before the
trades. Mr. Cohen hasn't been criminally charged and he has denied
wrongdoing.
After federal agents arrived at his home in late 2011, Mr. Martoma fainted
in his front yard, according to court documents. But even after prosecutors
made overtures to solicit his cooperation, a move that could potentially
have earned him leniency, Mr. Martoma opted to go to trial. He did so rather
than try to cut a deal, such as providing information about the billionaire
Mr. Cohen, according to people familiar with the matter.
The guilty verdict against Mr. Martoma came after roughly 15 hours of
deliberation and a trial that lasted more than four weeks in Manhattan
federal court. The 12-member jury comprised of seven women and five men
convicted him of two counts of securities fraud and one count of conspiracy.
Mr. Martoma now faces as many as 20 years in prison on each of the two
counts of securities fraud and five years for the conspiracy charge, though
his sentence is likely to be significantly lower under federal guidelines. U
.S. District Judge Paul Gardephe, who presided over the trial, has yet to
set a sentencing date.
Through Mr. Martoma's spokesman, his attorney said: "We're very disappointed
and we plan to appeal." The portfolio manager, who didn't take the stand in
his own defense during the trial, will now appeal the verdict, his
spokesman said.
A spokesman for SAC and Mr. Cohen declined to comment after the verdict.
In November, SAC struck a pact with federal prosecutors to resolve criminal
charges against the firm, pleading guilty to insider trading and agreeing to
pay about $1.2 billion in new penalties. Eight current or former employees
at the firm, including Mr. Martoma, have pleaded guilty to or been convicted
of criminal insider-trading charges.
The Federal Bureau of Investigation's probe of SAC and Mr. Cohen remains
active, according to a person briefed on the matter. Agents are looking into
allegations of insider trading, including instances that haven't been made
public, the person said.
Mr. Cohen faces a civil case filed by the Securities and Exchange Commission
. The trades at the heart of Mr. Martoma's case are some of the same ones
the SEC cites in its lawsuit against Mr. Cohen, who is accused of failing to
adequately supervise traders at his firm. Mr. Cohen has denied any
wrongdoing and said he acted appropriately.
Mr. Martoma, who worked at SAC for four years but was fired in 2010, was
accused of trading using inside information provided by two doctors, Sidney
Gilman and Joel Ross, about the trial of an Alzheimer's drug being developed
by Elan Corp. and Wyeth Pharmaceuticals. Elan is now part of Perrigo Co.,
and Wyeth is part of Pfizer Inc.
The trial was a key test of the drug's safety and efficacy. Dr. Gilman, who
was chairman of a safety committee overseeing the trials, leaked the final
results of the trial's second phase to Mr. Martoma in July 2008, more than a
week before their public release, Dr. Gilman told jurors.
After learning the results from Dr. Gilman and deducing that the drug wasn't
ready to market, Mr. Martoma and SAC began unloading a position in Elan and
Wyeth stock worth more than $700 million. The hedge fund also took on new "
short" positions, or bets that the stocks would fall in reaction to the bad
trial results.
Fresh off the insider-trading conviction of another portfolio manager,
Michael Steinberg, in December, prosecutors arrived at Mr. Martoma's trial
with what they privately felt was one of the strongest cases to emerge from
their decadelong investigation into SAC.
Prosecutors called both Dr. Gilman and Dr. Ross as witnesses. They testified
that they passed inside tips on drug tests to Mr. Martoma, providing a
direct link between Mr. Martoma and the alleged inside information.
The testimony of Dr. Gilman appeared particularly damaging. The 81-year-old
neurologist overcame the defense team's attacks on his credibility and
recollections, remaining steadfast in saying he "systematically" passed
confidential information to Mr. Martoma and explaining that he initially
lied to federal investigators about what he did because he was "ashamed."
Prosecutors had conceded to jurors that Dr. Gilman's memory was "far from
perfect" but hoped that the physician could still sway them. During closing
arguments on Monday, prosecutors asked jurors to trust the doctor, who they
said Mr. Martoma flattered and cultivated as a "canary in the coal mine" on
the drug trial results.
Dr. Gilman, who reached a nonprosecution agreement with the U.S. attorney's
office, won't be criminally charged.
"Dr. Gilman didn't really have interest in anything other than telling the
truth," said his lawyer, Marc Mukasey, "and the jury's verdict would suggest
that they credited his testimony."
During closing arguments, a lawyer for Mr. Martoma questioned the memory and
motivations of Dr. Gilman. The defense lawyer, Richard Strassberg,
lambasted the doctor as an unreliable witness whose memory was "ever-
changing" and who lied about recalling details he only knew from reviewing
evidence with prosecutors shortly before the trial.
Under cross-examination by defense lawyers earlier in the trial, Dr. Gilman
explained that FBI agents told him he wasn't their true target. "[The FBI
agent] also mentioned I am only a grain of sand, as is Mr. Martoma," Dr.
Gilman said. "They are really after a man named Steven A. Cohen. "
New details emerged during the trial about SAC's inner workings. Several SAC
employees testified that Mr. Cohen had ultimate control over trades in firm
-wide accounts but kept the advice he was receiving close to the vest.
SAC, whose heavy trading activity has long made it one of the most lucrative
clients for Wall Street firms, is in the process of transitioning into a so
-called family office, a leaner organization that will only manage the
wealth of Mr. Cohen and his employees. The firm agreed to stop managing
outside money as part of its settlement with the government. The company
recently closed its London office and laid off a handful of U.S. portfolio
managers. The slimmed-down firm is likely to still be large, however, with
as much as $9 billion in assets in its new form.
Some of the testimony could prove useful to the SEC in its case, with
regulators getting an advance look at what SAC employees could say if they
are put on the stand, according to Daniel Levy, a former federal prosecutor
in New York who isn't involved in the case. The SAC employees could be
forced to testify during the SEC's administrative proceeding, under the
terms of a civil settlement last year.
The date for Mr. Cohen's civil proceeding won't be set until a federal judge
decides whether to accept SAC's guilty plea, according to a person familiar
with the matter. U.S. District Judge Laura Swain is scheduled to rule on
the plea deal next month. | p****u
发帖数: 2596 | 2 他不是什么大阿三. 街上阿三他可排不上号。.
Martoma
virtually
【在 c********l 的大作中提到】
: Former SAC Manager Mathew Martoma Found Guilty in Insider Case
: By CHRISTOPHER M. MATTHEWS And JOHN CARREYROU
: Updated Feb. 6, 2014 3:49 p.m. ET
: Mathew Martoma, a former SAC Capital Advisors portfolio manager, leaves
: federal court in New York on Thursday with his wife, Rosemary. A jury
: Thursday convicted Mr. Martoma of insider trading. Bloomberg News
: A jury found former SAC Capital Advisors LP portfolio manager Mathew Martoma
: guilty of insider trading, a verdict that burnishes prosecutors' virtually
: flawless trial record in such cases in recent years and could bolster a
: related civil case against the firm's founder, Steven A. Cohen.
| c*******u
发帖数: 1269 | 3 改名成绩单造假被开除。。
★ 发自iPhone App: ChineseWeb 7.8 | r***s
发帖数: 59 | | r***s
发帖数: 59 | | c********l
发帖数: 8138 | 6 三姐绝对是忠贞
三姐是世界上优秀女性的代表（不含任何反讽），看看《三傻》就知道。
【在 r***s 的大作中提到】
: 和这位比，三姐算很忠贞了：
: http://en.wikipedia.org/wiki/Sergey_Aleynikov
| h****e
发帖数: 2125 | 7 What name will Cohen change SAC to?
【在 p****u 的大作中提到】
: 他不是什么大阿三. 街上阿三他可排不上号。.
:
: Martoma
: virtually
| w****j
发帖数: 6262 | 8 这个阿三看起来好年轻呀。毕业没几年就能玩这么大了，人才呀。
【在 p****u 的大作中提到】
: 他不是什么大阿三. 街上阿三他可排不上号。.
:
: Martoma
: virtually
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