Insider-Trading Crackdown Bolstered as Martoma's Appeal Rejected

  • Porfolio manager was convicted in biggest-ever insider case
  • Martoma had argued trial tainted by improper jury instructions

Mathew Martoma, a former portfolio manager at a unit of SAC Capital Advisors LP, center, exits federal court in New York, on Nov. 26, 2012.

Photographer: Peter Foley/Bloomberg
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Former SAC Capital Advisors LP portfolio manager Mathew Martoma lost a bid to overturn his insider-trading conviction, giving a boost to federal prosecutors seeking to clean up illegal behavior on Wall Street.

White-collar crime experts said the appeals court ruling refusing to grant the jailed trader a retrial will widen the category of people who can potentially be prosecuted to include those who get an inside tip as a gift from an acquaintance or business associate.