US seeks prison in New York insider trading case
NEW YORK (AP) — The federal government is recommending that a former portfolio manager serve up to about 20 years in prison. His lawyers call that "outrageous" and "irrational."
Mathew Martoma will be sentenced Monday afternoon.
His lawyers said in a recent court filing that to mete out such a stiff punishment, the judge would have to conclude Martoma teamed up with his billionaire boss. They say the government never proved Martoma provided Steven A. Cohen with inside information.
Cohen has not been criminally charged. But the Securities and Exchange Commission has accused him in a civil action of failing to prevent insider trading at his company, SAC Capital Advisors. He has disputed the allegations.
The Probation Department has recommended Martoma receive roughly 15 to 20 years in prison for his securities fraud and conspiracy conviction.