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What Does the Government Want from Martoma?

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  • Description

    FBN's Charlie Gasparino on the latest on SAC Capital and Mathew Martoma's legal fees.

  • Duration 4:09
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And Melissa yeah how -- a better reason to celebrate Tom miles back.

Anna and I and -- kind of an anti capitalists for all of you how important -- daylight if you don't look it did pay over.

And how important is it that Steve Cohen's SEC capital's paying the legal fees of a former trader Matthew -- -- the government investigators are trying to get to flip against his old box and their probe of insider trading at the big hedge fund.

-- -- with the very latest.

I -- I -- Little more research on this and we there's two schools of thought -- number one is gun companies often pay the legal expenses.

Of employees -- go -- -- investigation.

That is true but we should point out that Matthew Moore told with a former hedge that fund trader that's at the center of the lead this allegation of insider trading and -- a C capital.

Left about two years ago OK so these two years out of it and here's what we know I spoke -- -- Komansky pretty Smart guy won't time.

White collar lawyer been around -- Wall Street firms.

Very successfully submit he says this -- when is likely Steve Cohen and the SEC is likely to have some sort of cooperation agreement with martone.

More than just pain is is bills he's basically in this sort of agreement where they could share documents they share strategy.

And here's the upshot.

If and when mark -- if and when he ever cooperates and we do know that they wanted to cooperate he's been approached several times.

I could tell you that people close and tell -- he still says no we -- -- cooperate but if he ever does.

Cut that deal with the government to -- -- he's facing twenty years in jail for those insider trading allegations that he was charged with you know arrested charged with.

I'm quite sure if it was quite indited get penalties preached at that stage but he -- be -- was charged by criminal authorities if you want to avoid twenty years.

Then he cuts the deal and then Steve Cohen knows exactly what he's gonna say to prepare his defense going to be cuts to deal the only probably cut it.

If -- the government only give it to him if he can if he can basically.

Tell them about what Steve Cohen knew what he did know about those insider trades that he was that he was accused -- we should point out that.

In the indictment says mark Toma was trading drug stocks -- -- whose wife and you want.

He gained in PE basis he'd be treated those stocks based on inside information he gleaned from a doctor that knew about clinical trials he wasn't supposed to do that.

That he told Steve -- something.

-- that -- Steve Cohen to trade that -- those stocks very profitably.

That we should point out also fed to say this is the largest largest insider trading case it probably -- in recent history something like 270.

Million dollars of ill gotten gains or.

Gains and and avoided losses.

He -- -- is Steve Cohen.

We don't know if he's -- and I'd I'd be I'm basing these trades based on illegal information we just know they talked to him.

And -- Steve -- traded now if you talk a lot people mistreat the same.

There's no -- -- we trade -- he knew that information was money good.

But we still don't know that that information how was conveyed and that's what the government wants at a more -- tell missiles which is said how you said it.

And did Steve Cohen knows he was -- -- illegal information and that's where we are right now.

So -- the -- thing.

I mean does that.

It seems like conflict of interest then after that you want conflict of interest.

Then Steve -- -- is just the way the system works it is a complicated as it.

They it's completely legal I mean there's it is completely it it is completely legal -- -- he worked it SAC.

It's a joint now I don't know what is content.

One of the complicating matters here's what I don't know -- contract and is contract might not have said.

We give you you know we we give you but you know borders until you did they -- about that stuff you do here.

You know if it would would would be -- -- seemed to know.

Is if they cut this deal to pay for his lawyers you know what they have their contract that would be that we don't know that we just know that they -- -- that fit their pay it forward.

The suspicion is we have not gotten this confirmed but the suspicion from every white -- -- expert I spoke to from Shymanski to Peter Henning a Wayne State University is that they have a cooperation agreement and when they have a cooperation agreement they -- documents.

And share defense it's almost a joint defense agreement.

And that is Steve -- -- huge leg up if more told what ever does cooperate he knows essentially what he's gonna say inner workings are fast and it's it's a fascinating case staff -- -- okay.

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