Is SAC’s Cohen Martoma’s Get Out of Jail Card?

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Feb. 7 (Bloomberg) -- Bloomberg Businessweek’s Sheelah Kolhatkar, Douglas Burns, former federal prosecutor, and Fabio Savoldeli of Columbia University, examine what comes next following former SAC trader Mathew Martoma’s conviction on insider trading charges on Bloomberg Television’s “Market Makers.”

The verdict was read.

What expression, if any, crossed his face?

He had a very dark, blank look on his face.

The same look that has been on his face throughout this entire trial.

He has been very hard to read.

His wife was sitting behind them.

She started sobbing.

It was a very sad moment.

When the jurors came in, you could see they were very somber.

There were looking down at the ground.

They were not happy about the news.

The guy faces 20 years in prison.

Chime in when ever you like.

What does this tell us about the likelihood or not that he may yet try to strike some kind of a plea deal with the prosecutors and avoid some of a prison time?

Can you imagine the conversation when the lawyer when they were deciding what course to take?

Should i go to trial?

The lawyer said let me give you recap.

The government is 78 no.

The conviction rate in court is 93%. what was he thinking when he decided to roll the dice in a case was that sean evidence?

We have rules and exceptions.

The general rule is the government, being somewhat babyish, is you decided to go to trial you have made your bed and now sleep in a. this could be the exception to the rule because of how badly they want to get steve:. i would take the other side.

If you work on the basis that he is a rational trader, there are two things that we be going on.

One is he has a free option.

He may have something so powerful he has a get out of jail card.

If the trial went well he can walk.

He does not need to play his car.

If it goes badly, he can still walk because he has some devastating tape of the 20 minute phone call and he walks in and says i am fond of jamaica.

I am leaving tomorrow.

That is plan a. plan b is everyone has talked about they may have offered him a deal.

They must have offered him a deal.

Let's look at his track record.

He falsified his resume that went to 23 federal judges.

He's than 223. he then goes out and they went through his name.

He falsified the e-mail that he sent.

We do not know when the government found out about that.

It seems relatively late in the game that this harvard issue came up here to the only released it late in the game.

He cannot know when they found that out.

I can tell you this.

As a defense lawyer, when he has falsified the e-mails, he created a fake rent a computer consulting company.

He could not take the stand.

Semi the bowl had way more credibility than this guy.

-- sammy theb bull had way more credibility than this guy.

He did not lie to get out of every bad situation.

He spent three months per homicide.

A superb book.

Setting that aside, when you look at this guy, the fact is sammy the bull with a highly credible witness.

I thought 19 people.

This guy had every opportunity and has lied.

When he comes in and said i spoke to the doctor who gave me negative news about the alzheimer's drug then i spoke to steve for 20 minutes and this is exactly what was said.

Every juror on this planet will believe that in my opinion.

By the time they listened to him lying about the transcripts and to get into the mba program.

He created a fake friends excel clockwork company.

His rap sheet, how good a witness is he after this devastating thing?

Changing your name.

What name are you going by today?

Do you buy the theory?

It is a cynical view but there's a lot of cynicism and the story.

Does he have any leverage left?

A lot of people said he has more leverage right before the trial.

Does he have anything left?

His clippers does not change.

His leverage depends on the quality of the get out of jail card he's got.

The government leverage has picked up.

Before he might have said show me evidence on a scale of one to 10. on a game theory bases, his leverage has not changed.

The government has.

Let's assume that he does not have a get out of jail free card.

Where does that leave the government?

As far as insider trading is concerned.

It seems like we might be at the end of the line.

I think insider trading will continue to be a priority for them.

As far as steve coehen's own firm, i jumping there close to charging any more employees.

I know they're looking at others.

They were larger charge him but they have not.

It only managed to charge his firm so far.

One of the things that puzzles me a little bit is the ease with which sac capital traders and managers have found other gainful employment.

Why, look, i've nothing against them as individuals.

Why aren't they toxic?

It was due to such an independent group of people.

There were individual teams within this group.

It is altering the hedge fund landscape.

Some of these are the best- known names in investing.

All of these are team-based structures.

You come in.

You are the value equity team or what ever.

If you are in foreign exchange if you are going to more and doing the emerging markets stuff, it is not necessarily the same as someone doing biotech stocks or that team obviously one heck of a harder time than somebody just trading and did not have much to do with it.

It will alter how people invest in funds.

Back to sheila's point.

They were indicted.

It is unusual.

You cannot put an end.

On some level, it telegraphed that they have arty conceded that they do not have a case.

I agree.

This is the exception to the rule.

The government almost always says you went to trial you made your bed.

This is the exception.

He still holds that card.

He's got nothing.

He has the ability to flag i testify about what that conversation was.

You do not have to be sherlock holmes to figure out the fda report is bad.

In i told the other guy.

Come on.

Not long ago, steve cohen was considered perhaps the greatest long short equity trader the world had ever seen.

Who is he now?

Is he the barry bonds of hedge funds?

I still think people respect him as a traitor and individual.

His firm, the u.s. postal service with lance armstrong and doping.

They are absolutely going to be heard.

In the case of gilman, he's 80 something years old.

The sad thing is that for the both of them, this will be the first one in their obituary.

He did this with an astro.

You are right.

He has not been convicted of anything.

Let's not forget that.

Nobody has charged him with anything and nobody has convicted him.

He still has to battle with the sec.

They're the only ones who leveled any charge against him personally.

They fouled a civil case accusing him of failing to supervise his employees.

He had been making noises that he would fight the case as it was a very scary case for him.

They want to borrow him -- a bar him from the security business.

I think he was holding something to see.

Is a 9 billion dollar family office.

Thank you very much.

Lonely comeback, bitcoin -- will

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

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