Home Banking & Finance Eighth SAC employee convicted of insider trading

Eighth SAC employee convicted of insider trading

An eighth SAC Capital hedge fund employee was found guilty of insider trading by a  federal jury in Manhattan Thursday.

The jury convicted Mathew Martoma, a former SAC portfolio manager, of illegally trading on confidential information with regards to a clinic trial for an Alzheimer’s drug. The deal earned SAC $275 million.

With two counts of securities fraud and one count of conspiracy, a prison sentence of seven to 10 years is expected for Martoma, according to the New York Times.

Last summer federal prosecutors indicted SAC, based in Stamford, for serving as a breeding ground for insider trading. In November the hedge fund, owned by Steven A. Cohen, agreed to pay a $1.2 billion settlement fee and cease managing outside investors’ money.

The firm is currently restructuring to manage only Cohen’s $9 billion in personal wealth. There are no more pending cases against any former or current SAC employee.

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