Mathew Martoma, a former portfolio manager at billionaire Steven A. Cohen's SAC Capital Advisors hedge fund, was found guilty on Thursday of engaging in what prosecutors called the most lucrative insider trading scheme in U.S. history.
A federal jury in Manhattan found Martoma, 39, guilty on all three of the conspiracy and securities fraud charges that he faced, over a scheme that allowed SAC Capital to make profits and avoid losses of $275 million.
The verdict was the eighth insider trading conviction of a current or former employee at SAC Capital, the $14 billion hedge fund that has long been in federal authorities' cross-hairs.
As news photographers snapped pictures, Martoma walked stone-faced out of the courthouse and into a waiting SUV with his wife and defense team. They did not speak to reporters. "We are very disappointed and we plan to appeal," his lawyer, Richard Strassberg, said through a spokesman.
Martoma, 39, faces up to 45 years in prison.
The conviction continued an unbroken winning streak at trial for federal prosecutors in New York, who have secured guilty pleas or verdicts against 79 individuals since October 2009 as part of a broad crackdown on insider trading on Wall Street....