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FBN's Charlie Gasparino on Matthew Martoma's incentive not to cooperate and whether SAC Capital will pay for his legal fees.
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I farmer as they -- capital trader Matthew Mark -- faces twenty years in jail for alleged insider trading violations.
And prosecutors have made no secret of their desire to happened give up.
Incriminating evidence against who -- his old boss SEC founder Steve Cohen.
But some say he has a powerful incentive not to -- -- -- here to explain.
-- -- -- -- -- -- -- -- We should point out that companies often.
Cover the legal expenses of their employees -- -- snarled in.
Sort of investigations.
Anathema to much -- been charged in a -- -- -- trading -- alleged back in the occurred back in 2008.
But here's what's kind of interesting about this.
2008.
He was essentially let go pushed out of -- -- C capital 2010.
And 2012 from what sources tell the Fox Business Network is that SEC capital into those -- has been -- -- for two years.
Is now covering his legal fees to pay the legal fees of -- -- Charlie still in long time.
White collar defense attorney does not come cheap right here he starts at around.
Thirteen hundred -- now however if this is something that we -- -- -- -- martone made about nine million dollars -- accords that criminal complaint that's on which.
He that was his bones and -- CC capital's got money maybe.
But thirteenth out thirteen thousand an hour and a 113 at thirteen hundred -- yesterday would -- 2000 B really -- at thirteen.
Hundred and our would be a lot of money.
And this is raising some eyebrows in the legal community -- -- we should point out companies often do this.
For full for employees and our strategy we we missed the mark -- probably had unemployment contract but -- -- don't know -- an appointment contract.
We don't know if this is a deal that was created.
Then based on an employment contract which covered -- now.
Or whether it's you know something that they just did now that the but he but he does a least according to legal experts.
It exists it does provide an incentive when your boss who they -- they want you to cooperate on and is no doubt that they want.
They want Steve Cohen that that's their ultimate target I -- say I've I've learned this from numerous.
You know people that talked about the law enforcement and -- involved in this in this case I can tell you that you read the complaint and a is that this anonymous you know owner who ordered to hedge fund.
Which they talk about they don't -- his name but we we we have confirmed it is Steve -- that he -- he.
TV inside information to we don't know if he told him this is inside information TC did this sort of distinct from drawing.
But clearly he's in involved in this case is clearly the -- will we understand.
The feds have had asked him in the past to cooperate against Steve Cohen we from we understand people close to -- almost say.
He's not he does not intend -- -- is no plans right now.
He is facing twenty years in jail we should point out as well.
But right now this is -- we are he has no plans to cooperate he wants a fight it we understand and this is kind of an interest in incentive.
Steve Collins SEC capital is paying his legal.
Expect what not the incentive of immunity I'm not sure that's the right questions asked from the government we passed that stage by -- mark Toma.
That the government won't or from -- more than yes -- I think -- there's still -- and if that is the case would SAC still cover -- -- legal expense well do you have it used I.
Don't really quit coming back to -- well I don't count because.
We -- you don't.
When you -- -- employment copper or even like see you write a book and there are spelled out if you get sued over contact who's gonna cover the -- -- he's maybe in his and as an agreement.
It spells out it's the you know you get in trouble as a result the work at any time in the future I -- did indeed with the agency if he wasn't employee and the like it's it's related to the working -- -- the -- -- maybe the language cover of security and.
Maybe it doesn't and this is a new thing will -- we don't know a lot right now and I'm you know I've I put calls it as its capital I spoke with Charlie ship Stillman Charlie's not commenting about this stuff.
It is not unusual for companies to pay these these legal fees but I will say this it does provide a degree of control even if he does cooperate against them.
You know there is some sort of these a lot of lawyers talk about you know people sharing information.
When when this goes on and you know you get heads up on on his possible cooperation.
You know possibly where.
He's where he's legal defense is going so it is an issue -- issue I did I bounces over bachelor's John Coffee says you know typically happens.
Peter Henning was adjusting the Wayne state university law professor said listen drug cartels do this right often -- -- that I could drop -- attempts could to its classic.
And it's always does despite the fact that it's routine in some respects we don't know if this is routine because we don't know what is -- point -- contract says.
Is reduce us -- sick but it raises suspicions all the time this is somewhat controversial signing way.
-- the little wrinkle in this case.
You know people say by the -- Sharon stared at twenty years shows no signs of wanting to cooperate.
Is this a possible incentive for that he could to I took a lot people thing they say yes.
The -- Greenwich Connecticut right more exactly like -- oh yeah that's no good.
I think -- and -- it passed its right.
