Mathew Martoma

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Mathew Martoma
Occupation Hedge Fund Portfolio Manager
Location Stamford, Connecticut

Mathew Martoma is a former hedge fund portfolio manager with CR Intrinsic Investors, a unit of SAC Capital Advisors. On November 20, 2012, Martoma was accused of perpetrating "the most lucrative insider trading scheme ever," according to Preet Bharara, the United States attorney in Manhattan, who brought the charges in Federal District Court in Manhattan. [1]

According to the allegations, Martoma, who specialized in healthcare stocks for CR Intrinsic, advised SAC founder Steven A. Cohen to liquidate and take short positions in two pharmaceutical companies, Wyeth and Elan, after receiving a series of tips regarding problems with the companies' Alzheimer's drug bapineuzumab. Martoma received the tips over an 18-month period from Dr. Sidney Gilman, a neurology professor at the University of Michigan, who also worked as a consultant for Elan and Wyeth. [2]

It was the most profitable insider trading scheme in U.S. history, netting $276 million in profit and avoided losses, according to prosecutors.[3]

The alleged insider trading occurred in 2008. After disappointing years in 2009 and 2010, Martoma was fired from the company in 2010.

On January 9, 2014, Martoma went on trial in Manhattan federal court and began to present his defense in the alleged insider-trading case.

Part of the evidence presented revealed Martoma’s relationship with Stephen Chan, who was facing charges that he defrauded financial firms of $12.6 million when the two met that year. Chan pleaded guilty to mail fraud and conspiracy and was sentenced to more than four years in prison. [4]

On February 6, 2014, A federal jury found Martoma guilty of insider trading. Martoma was found guilty on all three counts, in which two accounts for securities fraud, and another for conspiracy. [5] On September 8, 2014, a judge sentenced Martoma to nine years in jail.[6]


Martoma studied at Harvard University Law School, but was expelled in 1999 for creating a false transcript. Martoma, who at the time was known as Ajai Mathew Thomas, legally changed his name to Mathew Martoma in 2001 and was accepted into Stanford Business School's MBA program. [7]