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SAC Capital ex-trader guilty of insider trading

Published: Thursday, Feb. 6, 2014 5:07 p.m. CDT
Caption
(AP photo)
Mathew Martoma, a former SAC Capital portfolio manager, arrives at federal court Thursday in New York. The former SAC Capital Advisors portfolio manager was convicted Thursday 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.

NEW YORK – A former SAC Capital Advisors portfolio manager was convicted Thursday 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 spilling secrets to Mathew Martoma during lucrative consultations with financiers.

Martoma sat expressionless as the jury forewoman announced he had been found guilty of two counts of securities fraud and conspiracy to commit securities fraud. Tears streamed down the face of his wife, who sat with her hands folded on her yellow dress.

The trial also contained frequent mentions of SAC Capital’s billionaire founder, Steven A. Cohen. Defense lawyer Richard Strassberg said in his closing argument Monday that Cohen was the real target of investigators. He said his client was victimized by the testimony of doctors who traded their credibility for plea deals that left them beholden to the government.

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