PIO loses plea in $275m insider trading scheme
New York, Aug. 24: An Indian-origin portfolio manager, who is serving a nine-year jail term for his role in the most lucrative insider trading scheme in the US, has lost his bid to overturn his conviction after an appeals court ruled that there was “overwhelming” evidence against him.
Mathew Martoma, 43, was convicted in 2014 for his role as the “central figure” in the most lucrative insider trading scheme ever charged involving $275 million in illegal profits.
Mr Martoma, who had changed his name from Ajai Mathew Thomas, had served as a portfolio manager of CR Intrinsic Investors, a division of hedge fund behemoth SAC Capital, led by billionaire Steven Cohen.
Mr Martoma had been charged with collecting confidential information about a high-profile Alzheimer’s drug trial from two doctors and making profits and avoiding losses of $275 million for SAC Capital.
In appealing against the conviction, Mr Martoma argued that the evidence presented at trial was insufficient to support his conviction but a three-judge bench at the 2nd Circuit Court of Appeals ruled in a 2-1 decision yesterday that the “government presented overwhelming
Mathew Martoma was convicted for his role in the lucrative insider trading scheme
He served as a portfolio manager of CR Intrinsic Investors
Martoma was charged with collecting confidential information
evidence that at least one tipper received a financial benefit from providing confidential information to Martoma.”
Former US Attorney Preet Bharara had led the government’s case against Mr Martoma and his successor at the Southern District of New York Acting US Attorney Joon Kim welcomed the Second Circuit’s affirmation of the conviction.
“We are gratified by the Second Circuit’s affirmation of Mathew Martoma’s conviction.
The strength of our securities markets rests on their integrity and fairness.”