ML-Implode News - SAC's Martoma's Nine-Year Sentence Reflects Outsized Insider Trading Gains

A federal judge in Manhattan sentenced Mathew Martoma to nine-years in prison yesterday for his role in an insider trading scheme that earned his former employer, the hedge fund SAC Capital, $276 million in illicit gains. Coming on the heels of a wave of insider trading prosecutions over the past five years, the sentence is among the longest ever issued for the crime.
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The impact of the sentence on SAC Capital's owner, Steven Cohen, remains clouded. The government has been investigating SAC Capital for years. Their efforts have yielded eight convictions and guilty pleas. Yet, Cohen, who has not been charged with criminal wrongdoing, has eluded their grasp.

The same cannot be said of SAC Capital. The firm pleaded guilty to one count of wire fraud and four counts of securities fraud and also settled civil charges with the Securities and Exchange Commission last year (another civil case with the SEC is still pending). It paid out more than $1.8 billion through these settlements and Cohen had to drop all of his clients: his new firm, Point72 Asset Management largely invests his multibillion fortune.

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SAC's Martoma's Nine-Year Sentence Reflects Outsized Insider Trading Gains