Former SAC portfolio manager Mathew Martoma was sentenced to nine years in federal prison for insider trading, CNBC’s Kate Kelly reports.
He also has to forfeit $US9.4 million.
In February, Martoma was found guilty on three counts — two securities fraud and one conspiracy.
Prosecutors said that Martoma used negative confidential drug trial info in pharmaceutical companies Elan Corporation and Wyeth between summer 2006 and mid-July 2008. The fund was then able to exit those positions and short those stocks avoiding losses of $US276 million.
In November 2013, SAC, which is run by Steve Cohen, pleaded guilty to criminal insider trading charges and agreed to pay a $US1.8 billion fine. SAC is now called Point72 Asset Management. It operates as a so-called “family office” fund and doesn’t manage outside capital.
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