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Former SAC Capital Advisors portfolio manager convicted of securities fraud

By Rebecca Walezak,

Former SAC Capital Advisors portfolio manager Mathew Martoma was convicted Thursday of helping the company illegally make a quarter of a billion dollars through secret trades.

The case, which has been taking place over the last month, had a guilty verdict with two counts of securities fraud. The Associated Press reports Martoma, 39, remained emotionless as the verdict was read, while his wife was devastated.

Martoma, who also faced one count of conspiracy, is now the eighth portfolio manager to be convicted of charges due to secret trades. The owner of the company, billionaire Steven A. Cohen, has never been convicted.

Cohen has made plans to move his business to a family office and run it purely on his own wealth. The firm, which has been in business for 22 years, will still maintain all of its employees after the switch.

According to the NY Times, Martoma will likely face a sentence of about 10 years in prison.

Martoma’s lawyer has stated that they plan to appeal the verdict. The jury has declined to comment.

 

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