Wesley Wang, a former analyst for SAC Capital Advisors LP’s Sigma Capital unit who cooperated with the government’s investigation of insider trading, was sentenced to two years’ probation.
Wang recorded phone calls and wore a body wire, incriminating about 20 people in insider trading, some of whom haven’t yet been charged, prosecutors said. U.S. District Judge Jed Rakoff, citing Wang’s cooperation, today sentenced him to probation, instead of as many as 37 months in prison called for in federal sentencing guidelines.
“I apologize to the court and the public for breaking the insider trading laws,” Wang, 39, told Rakoff in a hearing in Manhattan federal court. “I’ve tried to make up for all the mistakes I’ve made. I hope your honor can see that I’ve left my former life behind and have started on a new path.”
Wang pleaded guilty last year to passing illegal tips to former Sigma Capital portfolio manager Dipak Patel and to Whitman Capital LLC hedge fund founder Doug Whitman. Wang’s testimony at Whitman’s criminal trial helped lead to his conviction on charges of conspiracy and securities fraud, prosecutors said.
“I found Mr. Wang to be a totally truthful witness,” said Rakoff, who presided over Whitman’s trial.
Patel, who ran a five-person team investigating technology stocks before leaving SAC in 2011, hasn’t been charged with a crime.
Wang is one of eight current or former SAC employees linked by government prosecutors and regulators to insider trading while at the firm. They include Mathew Martoma, a former SAC portfolio manager who is charged with using inside information about the clinical trial of an Alzheimer’s drug to help SAC make $276 million in profits and averted losses. Prosecutors have called it the largest insider-trading scheme in history.
Martoma is charged with passing inside information on the drug trial to Steven Cohen, SAC’s founder, who allegedly used it to liquidate a $700 million position in the companies promoting the drug. Cohen hasn’t been charged.
Jonathan Gasthalter, a spokesman for Stamford, Connecticut- based SAC, has said that Cohen and SAC did nothing wrong.
The case is U.S. v. Wang, 12-cr-541, U.S. District Court, Southern District of New York (Manhattan).
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