Former SAC Capital Advisors portfolio manager Mathew Martoma has been convicted of insider trading Thursday.
The New York Times reported that Martoma, who is the eighth person who once worked at Steve Cohen’s SAC Capital to either be convicted or plead guilty to insider trading, is expected to face a prison term of seven to ten years.
Martoma was charged by federal authorities last November for allegedly making over $250 million for Connecticut-based SAC Capital using insider information he received regarding an Alzheimer disease drug trial. The guilty verdict is the latest setback Cohen and SAC Capital, which itself pleaded guilty to securities fraud charges in November and agreed to pay a $1.2 billion penalty.
SAC, which managed about $14 billion in total assets under management as of July 1, is currently in the midst of transitioning into a family office.