Prosecutors Want More Than Eight Years In Prison For Martoma

Jun 30 2014 | 6:33am ET

Prosecutors don’t think that former SAC Capital Advisors trader Mathew Martoma should spend nearly 20 years in prison—they’d settle for something closer to 10.

The U.S. Attorney’s Office in Manhattan urged U.S. District Judge Paul Gardephe to impose a sentence “toward the high end” of those levied in previous insider-trading cases. The prosecutors said that the sentence should be longer than the eight years recommended by the court’s probation department; the longest insider-trading sentence in history is 12 years behind bars.

“If the crime of insider trading is a serious one, Martoma stands before the court as one of the very worst offenders,” prosecutors wrote.

Martoma was convicted in February of illegally trading shares of two pharmaceutical companies in a scheme that prosecutors called the “most lucrative” insider-trading case in history, one which earned SAC some $276 million in illicit profits. In their letter to Gardephe, prosecutors called those ill-gotten gains “unprecedented.”

Martoma is set to be sentenced on July 28, a six-week delay from the original hearing, prompted by the probation department’s calculation that federal sentencing guidelines called for a term of between 15 years, eight months and 19 years, seven months. The former hedge fund manager’s lawyers called that “outrageous,” and prosecutors have not opposed a sentence below that range.

Martoma’s lawyers are seeking a sentence of between two and three years.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.