Insider trading leads to conviction of ex-SAC portfolio manager
NEW YORK -- A former SAC Capital Advisors portfolio manager was convicted Thurs-
day of helping his company earn more than a quarter billion dollars illegally through trades based on secrets about the testing of a potential breakthrough Alzheimer’s drug.
The verdict capped a three-week trial that featured testimony from two prominent doctors who confessed to spilling secrets to Mathew Martoma during lucrative consultations. When prosecutors announced the case in November 2012, they said it may be the most lucrative insider trading scheme of all time.
Martoma watched the jury without expression as the jury forewoman announced he was guilty of two counts of securities fraud and conspiracy to commit securities fraud. Tears streamed down the face of his wife, Rosemary, whose hands were folded on her yellow dress. No sentencing date was set.
Martoma’s lawyer, Richard Strassberg, said afterward they were disappointed and planned to appeal. Jurors declined to comment outside the Manhattan courthouse shortly before Mart-
oma descended its long staircase, tightly clutching his wife’s hand.
In a statement, U. S. Attorney Preet Bharara noted Martoma was the 79th person convicted in a stream of insider trading cases over the last four years. He compared Martoma’s actions to buying an answer sheet before an exam.
"As the jury unanimously found, Mathew Martoma cultivated and purchased the confidence of doctors with secret knowledge of an experimental Alzheimer’s drug, and used it to engage in illegal insider trading," he said. "In the short run, cheating may have been profitable for Martoma, but in the end, it made him a convicted felon."
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