top of page
  • Writer's pictureKirk Hartley

Imagine Being the Judge on this Motion from the SAC Capital Hedge Funder Now on Trial for Insider Tr

Imagine being the judge in this case.

Background: The case is the Martoma criminal trial for insider trading at SAC Capital. The allegations are that Mr. Martoma was paying off a doctor for inside information on inside news of the results on a major drug trial. On obtaining inside word of bad results (which would hurt the stock), he tipped his direct boss and uber boss, the ever-charming Steve Cohen. As the defense story goes, Mr. Cohen did not get a direct tipping email, and gosh darn it just does not remember much about a 20 minute call shortly before he dumped shares of stock worth tens of millions, and then shorted the stock.

Motions: The defense seeks to supress – and keep sealed – records regarding Mr. Martoma’s lying and fraud problems that resulted in Harvard law kicking him out of school. The frauds include seeking federal clerkships by sending judges fake transcript showing better grades than were actually earned. As explained in an article by Alison Frankel and others: "According to one of the orders, which was unsealed Thursday, Martoma, then a Harvard Law student, used computer software to create a fake transcript which he then sent to federal judges in an attempt to secure a clerkship. Based on his beefed up transcript, he landed interviews with several judges."

But the lie caught up with him and Harvard initiated disciplinary proceedings. During the proceedings, Martoma changed the date of an email before submitting it as evidence of his innocence. He also submitted a computer forensic report about the email with the falsified date, but did not tell the disciplinary committee that the company that produced the forensic report was his creation."

The judge so far is refusing to seal or suppress the evidence. DealBook also has a story on the subject.

0 views0 comments

Recent Posts

See All
bottom of page