Ex-SAC Fund Manager Martoma Found Guilty of Insider Trading

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Publisher: Bloomberg Magazine
Author: Bob Van Voris and Patricia Hurtado
 

On February 6th, 2014, jurors in a Manhattan federal court found Mr. Mathew Martoma guilty on charges of insider trading for their 7th conviction in the SEC investigation of SAC Capital Advisors LP.

Mr. Martoma was accused of using non-public information on the results of clinical trials for an Alzheimer medication in order to reap a $275 million dollar benefit for his fund. The trial marks another success for the US Government in criminal cases involving insider-trading allegations and follows the successful conviction of another SAC Capital Advisors LP fund manager Michael Steinberg, who was convicted earlier.  The successful conviction marks another win for the SEC and may embolden prosecutors to go after Stephen Cohen, the billionaire founder of SAC Capital Advisors.

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What are your opinions on the SEC’s persistence in pursuing criminal trials for alleged insider-trading? Feel free to engage with us on your opinions in the comment box below.

By : Securex /February 07, 2014 /Compliance, Marketforms.com, SEC Forms, SEC News and Public Statement, Section 16 Filings, Securites Law /1 Comment