Mathew Martoma

Mathew Martoma
Born Ajai Mathew Thomas[1]
May 18, 1974
Michigan, U.S.
Residence Boca Raton, Florida, U.S.[2]
Nationality American[2]
Other names Mathew Cochukattil Martoma[2]
Alma mater Stanford Graduate School of Business (M.B.A., 2003, revoked 2014), Harvard Law School (Expelled, 1999) Duke University, B.S., Biomedics, Ethics, and Public Policy, 1995[2]
Occupation Portfolio manager
Known for Insider trading conviction
Spouse(s) Rosemary Martoma, M.D. (m. 2003)[3]
Children Three[2]

Mathew Martoma (born May 18, 1974 as Ajai Mathew Mariamdani Thomas)[2] is an American former hedge fund trader. As a former portfolio manager at S.A.C. Capital Advisors, a Stamford, Connecticut-based hedge fund, he was accused of generating possibly the largest single insider trading transaction profit in history at a value of $276 million.[1] On November 20, 2014, he began serving a nine-year prison sentence.

Early life

Martoma was born in Michigan and grew up in Merritt Island, Florida. His mother, Lizzie, is a doctor and his father, Bobby (formerly Cochukattil Thomas),[4][5] owns a dry cleaning and laundry company. Both are immigrants from India.[2]

He graduated from Merritt Island High School in 1992.[6] He graduated from Duke University and then attended Harvard Law School but was expelled in 1999[7] for grade manipulation and dishonesty.[2] After leaving Harvard, he legally changed his name from Ajai Mathew Thomas to Mathew Cochukattil Martoma in 2001.[4][7] He then applied and was accepted to Stanford Business School, where he received an MBA in 2003.[7] After Martoma's trial, where it was revealed that he had been expelled from Harvard but did not disclose that to Stanford, Stanford took back his degree for being admitted under false pretenses.[8][9]

Martoma worked as a portfolio manager at S.A.C. Capital Advisors.[10] He was hired in 2006 after working for three years at Sirios Capital Management. Martoma owns a $2 million mansion in Boca Raton that includes five-bedrooms, six-and-a-half bathrooms, a pool, an elevator, and a fake lawn.[11][12]

Trial

According to the criminal complaint filed by the U.S. Department of Justice, Martoma allegedly advised Steven A. Cohen to sell shares of pharmaceutical companies Wyeth and Elan Corporation based on tips from two doctors, including Sid Gilman of the University of Michigan,[13] about the Alzheimer's disease drug bapineuzumab during clinical trials overseen by the FDA.[14] Martoma pleaded not guilty to formal charges of securities fraud, two counts, and conspiracy which resulted in $276 million in profits for SAC Capital in 2008.[15] The insider trading trial began on January 9, 2014 in the United States District Court for the Southern District of New York. A jury of seven women and five men was selected to evaluate the evidence in a courtroom presided by U.S. District Judge Paul Gardephe.[2]

On February 6, 2014, Martoma was found guilty on all charges.[16] On September 8, 2014, Martoma was sentenced to 9 years in prison. In addition Martoma must forfeit his $9.38 million bonus which he earned in 2008.[10][17]

Personal life

Martoma is married to Dr. Rosemary A. Martoma (née Kurian), a pediatrician.[4]

References

  1. 1 2 "Indian-origin fund manager indicted in insider trading - Rediff.com Business". Rediff.com. 2012-12-26. Retrieved 2014-03-03.
  2. 1 2 3 4 5 6 7 8 9 Van Voris, Bob; Kishan, Saijel (January 10, 2014). "SAC's Martoma Harvard-Expulsion Revealed as Trial Starts". bloomberg.com. Bloomberg L.P. Retrieved February 22, 2014.
  3. ↑ Celarier, Michelle (January 10, 2014). "Martoma's wife literallry comes to his defense in trial". New York Post. Retrieved January 10, 2014.
  4. 1 2 3 Van, Bob (2014-01-10). "SAC's Martoma Harvard-Expulsion Revealed as Trial Starts". Bloomberg. Retrieved 2014-03-08.
  5. ↑ "Bobby Martoma in Rockledge, FL". Intelius.com. Retrieved 2014-03-08.
  6. ↑ "Feds: Merritt Island High grad an inside trader | News - Home". Clickorlando.com. 2012-12-20. Retrieved 2014-03-08.
  7. 1 2 3 Goldstein, Matthew (January 14, 2014). "Ex-SAC Capital Trader Found His Way to Stanford After Harvard Expulsion". The New York Times. Retrieved 2014-03-08.
  8. ↑ Goldstein, Matthew (March 5, 2014). "Convicted SAC Trader Loses His Business School Degree". The New York Times. Retrieved 2014-03-08.
  9. ↑ Korn, Melissa (1953-03-07). "Stanford B-School Strips Diploma of SAC Capital's Martoma - MoneyBeat - WSJ". Blogs.wsj.com. Retrieved 2014-03-08.
  10. 1 2 Matthew Goldstein (September 8, 2014). "Martoma, SAC Capital Ex-Trader, Gets 9 Years in Prison". The New York Times.
  11. ↑ Julia La Roche (December 7, 2012). "Check Out The Florida Mansion Of Accused Insider Trader Matthew Martoma". Business Insider.
  12. ↑ Katherine Burton; Saijel Kishan; Bob Van Voris (November 23, 2012). "Everything You Need To Know About Accused Insider Trader Mathew Martoma". Business Insider.
  13. ↑ Betzold, Michael (2013-1-26). "The Corruption of Sid Gilman-How a top U-M doc lost his way". Ann Arbor Observer. Retrieved 24 February 2014. Check date values in: |date= (help)
  14. ↑ Van Voris, Bob (11/12/2012). "Ex-SAC Manager Martoma Charged in Record Insider Scheme". Bloomberg News. Retrieved 1/14/2014.. Check date values in: |access-date=, |date= (help)
  15. ↑ "Martoma Pleads Not Guilty To Revised Indictment". Finalternatives.com. 2013-08-23. Retrieved 2014-01-14.
  16. ↑ Stevenson, Alexandra; Goldstein, Matthew (February 7, 2014). "Ex-SAC Trader Convicted of Securities Fraud". The New York Times. p. A1. Retrieved February 22, 2014.
  17. ↑ Goldstein, Matthew (September 8, 2014). "Martoma Sentenced to 9 Years for Insider Trading at SAC". The New York Times. Retrieved September 8, 2014.
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