Mathew Martoma has been found guilty of two counts of securities fraud and conspiracy to commit securities fraud. Martoma helped his company earn about a quarter billion dollars by revealing secrets from doctors who were testing of a potential breakthrough drug for Alzheimer’s.
Well, these are some serious felony charges, and I’m sure the government isn’t finished. Hit the jump for more of the deets.
Mathew Martoma’s defense attorney Richard Strassberg stated in closing arguments that the government’s initial investigation was focused on SAC’s founder, Steven Cohen, but witnesses threw his client in the hot seat.
Two doctors who dropped the secrets to Martoma found out “just how frighteningly scary it can be if you get in the way of a government investigation that’s targeting someone like Steve Cohen,” according to Strassberg.
One of the doctors, Sidney Gilman claimed that Martoma “charmed” the secrets out of him. He revealed the secrets two-weeks prior to the news being available to the public. He also states that although he can’t remember giving anyone else the information, he MIGHT have dropped the ball “here and there.”
Crooks, criminals and dime-droppers all over the world.
