Diamondback capital liquidating
Neither have faced charges and both are still in business.Ryan Abrams is Assistant Portfolio Manager at Wisconsin Alumni Research Foundation, the private nonprofit technology transfer office of the University of Wisconsin-Madison.“Unlike Newman, the Martoma decision comports with longstanding law and common sense. Former SAC Capital Advisor portfolio manager Mathew Martoma was found guilty of insider trading on Thursday — bringing US Attorney Preet Bharara’s record in his five-year-old Wall Street probe to 79-0.“We are very disappointed and we are planning an appeal,” said Martoma lawyer Richard Strassberg. “In the short run, cheating may have been profitable for Martoma, but in the end, it made him a convicted felon, and likely will result in the forfeiture of his illegal windfall and the loss of his liberty,” Bharara said in a statement after the verdict.Martoma, 39, faces up to fives years in prison on the conspiracy count and up to 20 years on the fraud charges.Six hedge funds — including SAC Capital — were shuttered by the probe.Martoma is one of 11 inside traders ensnared in Bharara’s dragnet who’ve gone to trial — and the second from SAC.
Martoma’s wife, Rosemary, a striking brunette pediatrician, was at her husband’s side throughout the trial. Bharara cheered Wednesday’s decision — and took a swipe at the Newman ruling.Martoma had pinned his hopes of overturning his conviction on a controversial 2014 Second Circuit insider-trading decision that held that the government, to gain a conviction, had to prove that the defendant knew the original tipster received a benefit in exchange for the tip.The 2014 decision is known as the Newman ruling because it overturned the conviction of hedge fund trader Todd Newman, of Diamondback Capital.An inmate in the low-security Miami Federal Correctional Institution, Martoma is not slated to be released until September 2021.
In 2014, a federal court jury convicted Martoma, a hedge fund portfolio manager, of masterminding a scam to gain insider info on two pharmaceutical companies, Wyeth and Elan.A jury of seven women and five men found the 39-year-old disgraced moneyman guilty of one count of conspiracy and two counts of securities fraud after deliberating for two-and-a-half days, ending the five-week trial.