Martoma Gets 9 Years For Insider Trading

Sep 8 2014 | 5:59pm ET

Former SAC Capital Advisors trader Mathew Martoma has been sentenced to nine years in prison for insider trading.

The sentence was handed down Monday by Judge Paul Gardephe in Manhattan. In February of this  year, a federal jury found Martoma guilty of conspiracy and securities fraud. Prosecutors said he earned or saved SAC $276 million trading on confidential information about an Alzheimer's drug trial.

As part of the sentencing, the federal judge also ordered that Martoma pay back his $9.38 million in bonuses.

Martoma was the eighth former SAC employee to be convicted of insider-trading during the government's crackdown on the crime.

In November  of 2013, Stamford, Conn.-based SAC, one of the most successful hedge funds in history, agreed to plead guilty to insider trading charges, return outside capital and pay a record $1.8 billion fine/forfeiture. Rechristened 72Point Asset Management, it now manages founder Stephen A. Cohen's own multi-billion fortune.

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