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Mathew Martoma had been on his way to being another American success story. Today, he is the eighth person who once worked for the hedge fund titan Steven A. Cohen to be convicted of insider trading.
A federal jury in Manhattan on Thursday found Mr. Martoma guilty of seeking out confidential information related to a clinical trial for an experimental drug for Alzheimer’s disease — information that enabled Mr. Cohen’s SAC Capital Advisors to earn $275 million.
The son of immigrant parents from India, Mr. Martoma, 39, graduated from Duke, attended Harvard Law School and earned an M.B.A. from Stanford Business School before he landed a job as portfolio manager at SAC, one of the most successful hedge funds in the world.
Now, Mr. Martoma is expected to receive a sentence of seven to 10 years in prison, legal experts said.
As a guilty verdict on two counts of securities fraud and one count of conspiracy was read in the courtroom in Lower Manhattan, Mr.
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Preet Bharara:
From CAFE and the Vox Media Podcast Network, welcome to Stay Tuned. I’m Preet Bharara.
Adam Grant:
Every day there’s breaking news that feels like the sky is falling and nobody wants to become Chicken Little. So, I think my test of what’s worth covering is are we still going to remember this event a week later?
Preet Bharara:
That’s Adam Grant. He’s a professor of psychology at the Wharton School at the University of Pennsylvania. He’s also the author of six books and the host of two podcasts that explore how we work, think and live. Adam joins me to discuss how to reframe the dread of uncertainty, when we should and shouldn’t trust the experts, and a subtle difference between compassion and empathy. And folks, you can now watch this interview on CAFE’s YouTube page. Click on the link in the show notes to watch this and other CAFE video content. That’s coming up. Stay tuned.
THE INTERVIEW
Psychologis