Friday, Sep 19, 2014

‘Indian American accused of insider trading must be jailed’

Press Trust of India | New York | Posted: June 29, 2014 1:34 am | Updated: June 29, 2014 1:36 am

An Indian-origin portfolio manager, convicted for his role as the “central figure” in one of the most lucrative insider trading schemes in US history, should be sentenced to more than eight years in prison, Manhattan’s top federal prosecutor Preet Bharara has said.

Mathew Martoma, 39, was convicted in February of one count of conspiracy to commit securities fraud and two counts of securities fraud.
A former portfolio manager of CR Intrinsic Investors, a division of hedge fund giant SAC Capital, Martoma will be sentenced on July 28 and and faces a maximum of 20 years in prison. Ahead of the sentencing, India-born Bharara asked the federal court here to sentence Martoma to more than eight years in prison for collecting confidential information about a high-profile drug trial and making profits and avoiding losses of $275 million for SAC Capital.

Martoma, a father of three, even earned a $9.3 million bonus for himself due to his various trades for SAC.

“Martoma’s post-graduate working life has been limited to highly-paid work for hedge funds. The bulk of Martoma’s earnings from his hedge fund career — the entirety of his $9 million bonus at SAC — were the proceeds of securities fraud,” Bharara said.

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