Thursday, 26 May 2016
Last updated 40 min ago
Apr 17 2014 | 9:49am ET
If admitted hedge fund tipster Danny Kuo goes to prison alongside former SAC Capital Advisors trader Mathew Martoma, he’d like to leave the big house with something his fellow insider-trader has lost: an M.B.A.
Kuo has asked a federal judge to allow him to attend his graduation from the University of Southern California’s Marshall School of Business next month. The former Whittier Trust Co. analyst wants his sentencing delayed until after commencement.
Kuo pleaded guilty two years ago to trading in inside information with three hedge funders: Level Global Investors co-founder Anthony Chiasson, Diamondback Capital Management trader Todd Newman and former SAC analyst Jon Horvath. He faces up to 45 years in prison, but is expected to get much less in recognition of his cooperation with prosecutors, who used his testimony to help win convictions against Chiasson and Newman.
Kuo thought business school “would be a good way to improve his résumé during a period… when he had difficulty working because of the pendency of this case,” his lawyer, Roland Riopelle, told Bloomberg News.
USC acknowledged that Kuo is indeed enrolled as a part-time M.B.A. student, although it declined to say whether it was aware of his criminal past.
Martoma lost the M.B.A. he earned at Stanford University after it emerged that he had lied on his application. Martoma, who was convicted of insider-trading in February, apparently failed to disclose that he was expelled from Harvard Law School for doctoring his transcript.