Martoma ‘earned’ degree in 2003.
By Deepak Chitnis
WASHINGTON, DC: Former hedge fund honcho Mathew Martoma, who was convicted last month for his role in the largest insider trading case in US history, has been stripped of his graduate degree from Stanford University.
The university revoked the former SAC Capitals manager’s admission from the Stanford Graduate School of Business, meaning that he legally no longer attended the school and therefore no longer has a degree from there. Martoma earned his degree from Stanford in 2003.
All applicants at the school sign agreements stating that they understand the school can rescind its offer of admission based on behavior that harms the integrity of the school. The school contacted Martoma to provide a letter explaining his actions, and even granted a two-week extensions when the original deadline passed. The extension expired last Friday, and now Stanford has disassociated itself from Martoma.
Martoma’s conviction, which was handed down on February 7, could land him 45 years in prison, which is almost four time the harshest insider trading sentence that US courts have ever given out – 12 years. He is expected to get from seven to 10 years in prison. At least a dozen of Martoma’s former co-workers reportedly testified against him in depositions with prosecutors, leading to a swift and decisive conviction.
Martoma is the eighth ex-employee of SAC to be convicted of insider trading. During his time at the hedge fund giant, which is managed by billionaire Steven A. Cohen, Martoma engaged in insider trading which estimates say illicitly profited the company as much as $275 million.
Last week, Martoma’s lawyers announced that he plans to appeal the verdict against him.
Martoma and his attorneys are alleging that improper evidence was used by the jury in coming to their verdict, and that they found Martoma guilty under tainted circumstances. Specifically, Martoma’s lawyers say that the prosecution never conclusively proved that Martoma gained access to privileged information.
The 45-page motion to throw out the verdict was filed last week, and if accepted, would effectively be an appeal of Martoma’s conviction on two counts of securities fraud and one count of conspiracy.