Mathew Martoma Sentenced To 9 Years For 'Most Lucrative' Insider Trading Scheme In History
He also has to forfeit $9.4 million.
In February, Martoma was found guilty on three counts -two securities fraud and one conspiracy.
In November 2012, Martoma - who worked at SAC subsidiary CR Intrinsic Investors - was charged in what the DOJ says was "the most lucrative" insider trading scheme in history.
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 $276 million.
In November 2013, SAC, which is run by Steve Cohen, pleaded guilty to criminal insider trading charges and agreed to pay a $1.8 billion fine. SAC is now called Point72 Asset Management. It operates as a so-called "family office" fund and doesn't manage outside capital.