Stop The Press! On the 12th November a 3-judges appeal hearing to extend Mathew Martoma’s bail release, pending an appeal for his near-record 9-years’ prison and US$7 mn confiscation, as a criminal law conviction for insider trading, was cursorily declined and belatedly he is set to start incarceration (see our earlier full research to this update). Watch This Space!
At the above mentioned the appeal hearing, U.S. Judges persistently enquired of the State prosecutors (from U.S. Department of Justice - DoJ) as to why a deposition that Steven A Cohen “SAC” submitted at an S.E.C. inquiry in May 2012, was not permitted in Mr Martoma’s January 2014 defence trial, even though the same insider-traded stocks (Elan Corp. and Wyeth Ltd), were at legal issue. The prosecuting lawyers seem to become vague and stated: “Strategic decision…so as not to confuse the jury”. State prosecutor’s, if anyone need reminding, are paid for with public taxpayer money and supposedly representing the public interest, here demonstrate how the law can be technically perverted, i.e. used to convict one and exonerate another from the same legal issue.
To re-cap key elements of the legal case demonstrating this systemic corruption in capitalism the issue at stake in FPM’a ‘plain English’ attempt (read also Muppet Mainstream Media diversion too): Mr Martoma’s defence in effect stated in their main appeal:
“What’s the evidence that gets me harsh 9 years prison and a confiscation conviction while head-honcho multi-billionaire at the centre of the web-of-securities fraud Mr Cohen walks ‘scot free’ into the sunset at age 58 with US$10 bn after 20+ years insinuation in corporate criminality? ”
The documented video deposition in question was that of the head-honcho Mr Cohen which indicated that he relied on Wayne Holman’s consultancy expertise (a healthcare portfolio manager, former SAC employee and friend who left in 2006 to form Ridgeback Capital Management) to profitably netting $275 mn from exiting a US$700 mn loss-making trading position. It was loss-making ‘long’ position based on the imminent drug trials announcement that was to be negative (i.e. SAC portfolio positions in experimental Alzheimer’s drug makers Elan Corp and Wyeth Ltd). Mr Martoma’s main appeal which is still pending will we expect seek reduced sentencing. Mr Martoma’s failure to extend bail from this appeal while his main appeal is pending maybe a court ‘side-show’ manoeuvre to assert insider trading enforcement. Whereas, FPM principals have repeatedly highlighted the “Punch and Judy” theatrical nature of American Juctice in ‘NSWF:Reputation’. ALL of the eight convicted individuals in this SAC-saga are still out on bail, as was Mr Martoma until this 3-judges appeal hearing. Doh!
FPM also note that we are updating the “FPM Reputation BlackList” to reflect that few if any from SAC-saga and litany of litigations has yet seen the inside of a prison despite eight convictions! Internally, FPM discussing if Ridgeback Capital Management founder Wayne Holman makes it on the reputation list.
Please feel free to correct us Mr Preet Bharara? Mr Bharara was the DoJ presiding State attorney in the insider trading sting (codenamed “xxxxx”), launched demonstratively and conveniently as an enforcement witch-hunt for the depression-like financial crisis. Another betting FPM principal also wagers that Mr Bharara, widely touted for the top job in U.S. Justice, was not nominated for the sham oversight of proceedings in the SAC-saga. Preet is the failed front-runner for Attorney General of USA to replace outgoing head Eric Holder. On 10th November Barack Obama nominated Attorney General as Loretta Lynch. This investigative critique explores another angle why Mr Bharara was snubbed. Mr Holder, the incumbent highest judicial authority in USA, under whose watch we witnessed the perfunctory litigation for larceny of net billions dollars from the public purse into private corporate profits for billionaire “establishment class” via Wall Street and Main Street corruption of capitalism, is walking on an FPM reputation tightrope. Under Mr Holder’s oversight, DoJ has expediently allowed ‘money to talk’ in the numerous high profile billion dollars litigations of corporate criminality (an exhaustive countdown list FPM have compiled in exchange for gratuity fee), and allowed executive white collar criminals to walk. Mr Holder: The organ grinder's money talks and monkeys get paid peanuts still – right?
FPM have profoundly described social status-quo as “plutocracy” or as we note unbound capitalism! FPM found an indepth investigative commentary on U.S. Justice but unrelated to our focus in financial and corporate matters: To Fight for Justice is to Fight the Law. If any genius out there believes in democracy please email us to shock us. As part of our active resistance against endemic corruption in capitalism, our story put yet another FPM big-picture way:
Stop the Press! On 17th November in a U.S. Manhattan court hearing Patricia Cohen, former wife of Steven A Cohen pursuing equitable divorce settlement since 1991, has managed to get Mr Cohen to be questioned in civil deposition hearing on 10th December. This is another side-show which the “Artful Dodger” will presumably settle out of court eventually. FPM congratulate Ms Cohen’s tenacious pursuit in her warranted bid. If American Justice showed as much tenacity as Patricia, the U.S. taxpayer could have reaped multiple billions for its public pursue, instead they are facing austerity!