A New York City jury today found Mallu kuttan Mathew Martoma, 39, G U I L T Y of insider trading.
The jury convicted the Mallu crook of two counts of securities fraud and one count of conspiracy.
For his crimes, Martoma faces a maximum sentence of up to 45 years.
I bet Martoma, who looked dapper in a dark suit and blue tie today, will look equally good in prison stripes. 😉
Mallu Criminal Mathew Martoma with Wife Rosemary
Martoma – Unhappy
Martoma is unhappy with the verdict and intends to appeal his conviction.
Despite the conviction, the Mallu Kuttan remains free on bail until his sentencing.
There’s no information yet on his sentencing date but Martoma has likely been ordered to wear an electronic bracelet to reduce flight risk.
According to Mathew Martoma’s indictment, his illegal schemes netted Martoma a bonus of about $9.3 million.
Martoma did not take the stand during the trial. He was represented by prominent White Collar defense attorney Richard Strassberg.
Martoma, previously a portfolio manager at the SAC hedge fund, was convicted of obtaining confidential information about a drug trial for Alzheimer’s disease before it was made public and then illegally trading on the base of that information in 2008. Martoma’s employer SAC also richly benefited from the insider information.
Martoma’s Luxurious Florida Mansion with Fake Grass & Elevator
(Photo courtesy: Zillow)
Bharara Delighted
Indian-American Preet Bharara, U.S. Attorney for the Southern district of New York, couldn’t hide his delight at getting his name into the newspapers again:
As the jury unanimously found, Mathew Martoma cultivated and purchased the confidence of doctors with secret knowledge of an experimental Alzheimer’s drug, and used it to engage in illegal insider trading. Martoma bought the answer sheet before the exam – more than once – netting a quarter billion dollars in profits and losses avoided for SAC, as well as a $9 million bonus for him. In the short run, cheating may have been profitable for Martoma, but in the end, it made him a convicted felon, and likely will result in the forfeiture of his illegal windfall and the loss of his liberty. Mathew Martoma becomes the 79th person convicted of insider trading after trial or by guilty plea in this District in the last four years.
Martoma Sentencing
Martoma’s sentencing will likely happen in a few months.
One hopes Martoma gets a long sentence as a deterrent to others tempted to engage in similar illegal behavior.
Federal prosecutors are expected to seek asset forfeiture as part of Martoma’s sentencing.
They will argue that his assets were illegally obtained.
Last year, a NYC judge froze Martoma’s house and accounts with over $4 million at the request of federal prosecutors.
I expect Martoma will spend at least 10 years in a tiny cell, a far cry from his luxurious 6,150-ft Boca Raton (Florida) mansion with elevator, swimming pool and fake grass.
Martoma – Bad Background
Martoma changed his birth name Ajai Mathew Mariamdani Thomas to Mathew Martoma after being expelled from Harvard.
The Mallu crook was kicked out of Harvard Law School for faking/inflating his grades while applying for a clerkship with judges.
Martoma is the son of Lizzie Thomas, a doctor, and Bobby Martoma, immigrants from India
Related Mathew Martoma Posts:
Mathew Martoma gets 9-yr Prison Term – Indian Crook Loses Freedom, Mansion, $9.3m
Mathew Martoma Court Verdict Document
Mathew Martoma Indictment Document
Mathew Martoma Complaint Document
Guilty! Mallu Kuttan Mathew Martoma Nailed added by SearchIndia.com on
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That Rosemary kutti looks hot !! 🙂
SearchIndia.com Responds:
I think she looks like a vamp! 🙁
I’d probably get scared if I saw her in low-light conditions!
If hubby goes to jail, she’ll have to endure 10-years of deprivation oops dickrivation (my neologism of the day).
Hey, Mallus are extremely crafty, they will eventually find a way out…Probably a smart bunch in the nation of parasites. They exhibit better survival instincts than any other group and know how to crawl through any shit they encounter
Unlike other Indians who hate each other Mallus often stay united and they never give up on their fellows, which is one quality that makes me admire them even more…
SearchIndia.com Responds:
You write: Mallus are extremely crafty, they will eventually find a way out…
Sweetie, in all my life I’ve never seen anyone as crafty as the White Man.
White Man Invented, Practiced and Perfected Crafty into a Fine Art!
You may have heard of the famous Native American saying:
Explanation: http://en.wikipedia.org/wiki/Forked_tongue
This Martoma guy will find it hard going to stay out jail.
Here is ‘another’ mallu who couldn’t find his way out.
This fella is K.J.Yesudas’s nephew.
Not sure if you’ve read about him…it’s an old news
http://en.wikipedia.org/wiki/Anand_Jon
SearchIndia.com Responds:
You write: Here is ‘another’ mallu…Not sure if you’ve read about him
I respectfully submit: http://www.searchindia.com/2009/08/31/anand-jon-will-be-95-when-he-gets-out-of-jail/
But there was a bigger Mallu whacko!
Oops…didn’t see that you already have a blog entry on this guy.
SearchIndia.com Responds:
As part of my altruistic mission, the next blog post on SI will be titled:
Telugus are way ahead of the other Indian criminals by a huge margin!
Wow…you really posted a blog on this title!!
I thought you were kidding when I read your reply.
SearchIndia.com Responds:
A ready reckoner for when people quote the Mahatma and describe Indians as peaceniks. 😉
I am from Kerala, and I really dont mind criminals ending up in jail Indian or American or what not.
However, these financial culprits – arent almost all of them criminals. I dont know much about stock markets. A friend who earns some money from the market once told that one of these big parliamentarian owned corporate issues new stocks and when a decent number is sold, the price will crash and he will buy all these stocks back – a kind of big fraud by the company owner itself.. and almost every bloody Indian corporate does some things, which are good enough to be in jail in a law abiding country.
SearchIndia.com Responds:
Yes, Wall St (and their smaller siblings like Dalal St) is one large state sanctioned criminal Enterprise.
Great fortunes are always preceded by great crimes.
People create artificial nonsense like CDO (collaterized Debt Obligations) and then trade on them.
Ultimately, CDOs and similar nonsense brought down the economy but nobody went to jail because of campaign contributions.
Only small brown ass kids like Martoma get caught.
Great Farce but Nice entertainment though. 😉
A Sheikh was admitted at the Lilavati Hospital in Mumbai for a heart transplant, but prior to the surgery the doctors needed to store hisblood in case the need arises. As the gentleman had a rare type of blood, it couldn’t be found locally. So the call went out to a number of countries.
Finally a malayalee named Rajappan Neyyattinkara Trichur ,Kerala was located who had a similar type of blood. Rajappan willingly donated his blood for the Sheikh. After the surgery, the Sheikh sent Rajappan as appreciation for giving his blood, a new Toyota Prado, diamonds, lapiz lazuri jewellery, and a Million Dinars.
Once again the Sheikh had to go through a corrective surgery. His doctor telephoned Rajappan who was more than happy to donate his blood again.
After the second surgery, the Sheikh sent Rajappan a thank you card and a jar of Almond halwa sweets. Rajappan was shocked to see that the Sheikh this time did not reciprocate Rajappan’s kind gesture as he had anticipated.
He phoned the Sheikh and said “This time also I thought that you would give me Toyota Prado, Diamonds and Jewellery….But you gave only a thank you card and a jar of Almond sweets. At this the Sheikh replied: ” ‘Mone’ Rajappa…now I have a malayalee’s blood in my veins!”
SearchIndia.com Responds:
Ha ha ha. Nice one! 🙂
But White blood is craftier than Mallu blood!
The White Man would have sent a hefty bill to Rajappan for Transfusion Acceptance charges on both occasions! 😉
Nice one shadowfax_arbit.. I ROFL