Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
Mathew Martoma (born May 18, 1974, as Ajai Mathew Mariamdani Thomas) is an American former hedge fund trader. As a portfolio manager at S.A.C. Capital Advisors, he was accused of generating possibly the largest single insider trading transaction profit in history at a value of $276 million.
A jury convicted him, and in November 2014 he began serving a nine-year prison sentence. He is currently incarcerated at FCI Miami as inmate 01138-104, and scheduled for early release on 19 July 2021.
King of Hedge Funds
Cohen is renowned not only for his ability to make money as a trader, but also for his penchant for spending it, on such things as a 30-room mansion in Greenwich, Connecticut and an art collection that includes works by Warhol, Picasso, Cézanne and other famous artists. [4]
Cohen began as an options trader with Gruntal & Co. in 1978. He started SAC Capital Advisors in 1992 with $25 million in assets. At its peak just before the conversion to a family office, SAC had over $50 billion under management, with a staff of 1000 people across the globe.[5]
Why SAC Capital’s Steven Cohen Isn’t in Jail
Sheelah Kolhatkar, 03 January 2014
Ten thousand dollars an hour worth of lawyers filed into a courtroom in lower Manhattan on the morning of Nov. 8. The legal team represented Steven Cohen’s hedge fund, SAC Capital Advisors, which had agreed to pay $1.2 billion to settle criminal charges that it had engaged in securities fraud. The hearing was the culmination of a long legal struggle between SAC and the government that has dramatically altered what was once one of Wall Street’s most powerful firms. Eight former or current SAC employees have been charged with insider trading. Six of them have pleaded guilty; one, Mathew Martoma, is due to go on trial on Jan. 6, and another, Michael Steinberg, was convicted on Dec. 18 of insider trading in two technology stocks. Continue reading “Article: Why SAC Capital’s Steven Cohen Isn’t in Jail”
Cohen, SAC Capital reach $135M insider-trading settlement
Kevin McCoy, 01 December 2016
Investment billionaire Steven Cohen and his former SAC Capital Advisors hedge fund have reached a preliminary $135 million settlement of insider-trading allegations filed by investors in Ireland drugmaker Elan. Continue reading “Article: Cohen, SAC Capital reach $135M insider-trading settlement”
Steven Cohen and SAC reach $135m insider-trading settlement
Rob Copeland, The Wall Street Journal, 01 December 2016
Billionaire Steven A. Cohen and his former hedge fund SAC Capital Advisors agreed to a $135 million class-action settlement on November 30, bringing legal costs tied to SAC-related insider-trading cases close to $2 billion. Continue reading “Article: Steven Cohen and SAC reach $135m insider-trading settlement”
Hedge fund billionaire Cohen settles with SEC after years of being investigated
Anthony Noto, 08 January 2016
Authorities have spent almost a decade trying to corner Steven Cohen on insider trading charges. Today, the hedge-fund billionaire settled the long-standing case with the U.S. Securities and Exchange Commission.
The result: Cohen has been barred from managing client money until 2018. The settlement determined that the hedge fund manager failed to supervise an employee, Mathew Martoma, who was convicted of insider trading. The SEC ruled that Cohen’s family office must bring on an independent consultant to review their activity to make sure they remain compliant with securities laws. Continue reading “Article: Hedge fund billionaire Cohen settles with SEC after years of being investigated”
Steve Cohen – “The Hedge Fund King”
One of the biggest stories in recent Wall Street history was the insider trading scandal centred around Steve Cohen’s SAC Capital Advisors. In July 2013, SAC was charged by the US Securities and Exchange Commission for failing to prevent insider trading, which led to a $1.2 billion fine and the firm agreeing to stop managing funds for outsiders.
Yet, Cohen himself managed to escape imprisonment, on the grounds that prosecutors lacked proof that he knew the trades in question, which were perpetrated by former SAC manager Mathew Martoma, were based on inside information, despite personally signing off on the deals.
A hedge on the edge: SAC Capital’s insider trading scandal
The Conversation, 26 July 2013
After causing the collapse of the Galleon Group hedge fund in 2009, insider trading enforcements have once again shaken the hedge fund industry. Late last week, the US Securities and Exchange Commission (SEC) charged Steven A. Cohen, CEO of SAC Capital Advisors LP, one of the world’s largest hedge funds, with failing to supervise two of his managers, Mathew Martoma and Michael Steinberg, who traded on material non-public information concerning three US listed companies in 2008. Continue reading “Article: A hedge on the edge: SAC Capital’s insider trading scandal”
Vincent PitaroHedge Fund Law Report, 25 July 2013
On July 19, 2013, the SEC instituted administrative proceedings against Steven A. Cohen, the embattled founder of hedge fund adviser S.A.C. Capital Advisors, LLC (SAC). Generally, the SEC charges Cohen with failing to supervise two of his portfolio managers, Mathew Martoma and Michael Steinberg, both of whom have been indicted on insider trading charges arising out of their trading for hedge funds advised by SAC. See “Fund Manager CR Intrinsic and Former SAC Portfolio Manager Are Civilly and Criminally Charged in Alleged ‘Record’ $276 Million Insider Trading Scheme, Hedge Fund Law Report, Vol. 5, No. 44 (Nov. 21, 2012). Continue reading “Article: SEC Charges Steven A. Cohen with Failing to Supervise Employees Who Allegedly Engaged in Insider Trading”
SEC charges SAC Capitals Steven Cohen over insider trading
Verdict Staff, 22 July 2013
The US Securities and Exchange Commission (SEC) has filed civil charges against Steven Cohen, head of the hedge fund SAC Capital, for failing to supervise two portfolio managers and prevent insider trading.
In the complaint, the SEC alleges that Cohen received highly suspicious information that should have caused any reasonable hedge fund manager to investigate the basis for trades made by two portfolio managers who reported to him, Mathew Martoma and Michael Steinberg. Continue reading “Article: SEC charges SAC Capitals Steven Cohen over insider trading”
SEC Charges Steven A. Cohen With Failing to Supervise Portfolio Managers and Prevent Insider Trading
SEC, 19 July 2013
The Securities and Exchange Commission today announced charges against hedge fund adviser Steven A. Cohen for failing to supervise two senior employees and prevent them from insider trading under his watch.
The SEC’s Division of Enforcement alleges that Cohen received highly suspicious information that should have caused any reasonable hedge fund manager to investigate the basis for trades made by two portfolio managers who reported to him – Mathew Martoma and Michael Steinberg. Cohen ignored the red flags and allowed Martoma and Steinberg to execute the trades. Instead of scrutinizing their conduct, Cohen praised Steinberg for his role in the suspicious trading and rewarded Martoma with a $9 million bonus for his work. Cohen’s hedge funds earned profits and avoided losses of more than $275 million as a result of the illegal trades. Continue reading “Article: SEC Charges Steven A. Cohen With Failing to Supervise Portfolio Managers and Prevent Insider Trading”
Indian-origin hedge fund manager Mathew Martoma indicted in insider trading
The Economic Times, 26 December 2012
Indian-origin hedge fund portfolio manager Mathew Martoma has been indicted in one of the “most lucrative” insider trading schemes ever involving $276 million and will be arraigned in a court here next month. Martoma, 38, was arrested last month at his home in Boca Raton, Florida, on charges of using material, non-public information he received from a doctor on the clinical trial of an Alzheimer’s disease drug to make prots and avoid losses for his hedge fund in an amount totaling $276 million Continue reading “Article: Indian-origin hedge fund manager Mathew Martoma indicted in insider trading”
NY Insider trading: Bharara is after Steven Cohen, not Mathew Martoma
SUttara Choudhury, 28 November 2012
Manhattan US Attorney Preet Bharara, who has won guilty convictions against high-profile Galleon Group billionaire Raj Rajaratnam and former Goldman Sachs director Rajat Gupta, is not resting on his laurels.
Since the crackdown on insider trading began five years ago on Wall Street, there have been more than 70 arrests. Manhattan US Attorney Preet Bharara, who has won guilty convictions against high-profile Galleon Group billionaire Raj Rajaratnam and former Goldman Sachs director Rajat Gupta, is not resting on his laurels. Continue reading “Article: NY Insider trading: Bharara is after Steven Cohen, not Mathew Martoma”
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
