SAC Capital Manager Goes to Trial
Jury selection begins on Tuesday in the trial of Matthew Martoma, a manager for SAC Capital, who's accused of insider trading. It's the latest court action in an investigation of the Connecticut-based hedge fund that has lasted for several years.
Less than a month ago, a jury in the same New York courthouse convicted another SAC executive on similar charges. Michael Steinberg was the seventh executive from the hedge fund to be convicted. It's thought that Martoma's trial could focus on the trading activities of his boss, the founder of the fund, Steven A. Cohen. Cohen has so far escaped personal liability, although the fund itself has pleaded guilty to fraud charges, and has been barred from acting as an investment manager.
A PBS "Frontline" documentary to be broadcast Tuesday evening takes a look at the government's investigation of SAC. Correspondent Martin Smith told WNPR's Colin McEnroe that there are real consequences to illegal actions on Wall Street.
"There definitely needs to be a conversation," Smith said, "about what standard of care are we demanding from people who are managing the livelihoods of ordinary people in this country, pension funds, etcetera. You know, it's one thing when obviously if there's a violent crime committed, and someone is killed, that's a tangible result. But often we don't see what happens to people who lose their life savings in an insider trading deal."
The "Frontline" investigation airs Tuesday at 10:00 pm on CPTV.