How Will Martoma Conviction Affect Steven Cohen?

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Feb. 6 (Bloomberg) –- Bloomberg’s Sheelah Kolhatkar reports from New York City on the verdict in the insider trading trial of ex-SAC Capital fund manager Mathew Martoma. She speaks with Adam Johnson and Julie Hyman on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Manhattan outside of the courtroom.

Tell us about what you have a hearing today.

In the mood was serious and somber in the courtroom.

When the jurors filed in, just around 2:00 p.m., they were all looking at the ground, it was a serious moment, and you could tell they had not come in there to acquit mr.

Matthew martoma.

There are many people that felt the case was very strong against matthew martoma from the beginning -- a lot of people expected a guilty verdict throughout, the yesterday the jurors were sending out questions, and some of the questions gave the defense reason for optimism.

They were expressing hopefulness yesterday.

Things went south quickly this afternoon, and they found him guilty on all three counts.

This does not mean that the feds are any closer to the big fish, does it?

This is something that we have talked about is a consistent theme.

We have seen prosecutions for a lot of the people around steven cohen, but he remained untouched.

Does this conviction change that at all?

It is fair to say that prosecutors did not expect the case to go to trial.

They thought by charging matthew martoma, he would deliver a case against steven cohen, his former boss at sac, but matthew martoma surprised everyone, if used to cooperate with the government, and ended up convicting him.

He could always decide to flip, but after watching him in starting his body language, i think it is unlikely.

He has much less leverage now than he did before the trial in terms of coming up with a deal, so to be honest i think the government is where they were before, they have charged sac, the firm has pled guilty, but steven cohen has not been charged and may not be.

The other surprise, matthew martoma never took the stand to defend himself.

He just sat there.

Why not?

Well, the defense in this case was very much the playbook insider trading defense, with the number one rule seems to be you do not take the stand because if you do, you open yourself up to a bunch of questions that could be very uncomfortable and not very helpful to your defense.

So, that does not look very good to the jury.

There is no other way to say it.

It is not a good sign for major's -- jurors perspective when i defendant claiming he is innocent will not take the stand and defend himself.

I do not think that is helpful.

That being said, i think the defense did the best job they possibly could have given what was stacked against them, which is a significant amount of evidence, two credible witnesses . they gave it their all.

They had several days of defense witnesses, which is a little unusual.

Some of them do not put anyone on the stand at all.

They tried their best.

They certainly did, and it did not work out for them.

Sheelah kolhatkar, thank you.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change