Former SAC Capital Advisors LP portfolio manager Mathew Martoma, convicted of orchestrating the most lucrative insider trading scheme in U.S. history, should be ordered to forfeit $9.4 million and required to pay a fine, U.S. prosecutors said.
The amount sought is equal to Martoma’s 2008 bonus, and exceeds his reported net worth of $7.4 million, prosecutors said in a filing today in Manhattan federal court.
Guidelines for the fine range from $20,000 to more than $570 million, representing twice the gains to SAC Capital of the illegal trades, prosecutors said. The court’s probation department recommended a fine of $20,000, they said, without making their own recommendation.
Martoma should spend more than eight years in prison, prosecutors have said. He was convicted in February of using illegal tips from doctors, who were overseeing drug tests, to trade in shares of Elan Corp. and Wyeth LLC. Before trial, Martoma rejected the government’s offer of leniency in exchange for his help in the investigation of SAC Capital and it founder, Steven A. Cohen.
Martoma is scheduled to be sentenced on Sept. 8
The case is U.S. v. Martoma, 12-cr-00973, U.S. District Court, Southern District of New York (Manhattan).