The government alleged that Martoma spoke to Cohen by phone on a Sunday after receiving the illegal tips, and SAC started liquidating its shares in the drug companies the following trading day.A point of intrigue leading up to the trial was whether Martoma would turn on Cohen, whose stellar returns made him a mythical figure in the hedge fund world.
Thursday’s verdict can complicate the legal battles that Cohen faces.
But if he has individual corroboration of potential misconduct by SAC or Mr.
Cohen, that’s another matter.” The prosecution’s case relied heavily on Gilman, 81, who will not face criminal charges because he cooperated with the government.
Prosecutors have long suspected that the gains were too good to be true.
But Martoma did not point a finger at his former boss.