There are plenty of crazy details in Black Edge about Steve Cohen, but there’s even more crazy details about Mathew Martoma, and one of the crazier details is how his parents took out a second mortgage and gave him a million dollars to start a computer company to try to coverup an email scandal he was involved in while at Harvard Law school.
The email scandal was about how he said he sent an email to withdrawal from clerkship positions he’d emailed out at a certain day and time. Yes, it’s all very confusing…it started when he changed the grades in some of his classes at Harvard Law and then applied to clerkships positions based on those higher grades. Did his parents actually think his plan was going to work and getting him back into Harvard Law….?
Of course, after this email scandal and his dismissal from Harvard Law, he eventually went on to Stanford Business school, believe it or not, and then on to S.A.C. Capital where he was part of the biggest insider trading transaction in history, long and short trades with a total value of $276 million. He was convicted of insider trading and is serving a nine-year prison sentence. The FBI and SEC tried to get Martoma to flip and give details about Cohen’s involvement in the trades but he never did.
The book is just amazing, even if you know much of the story. There are tons of details about the people surrounding this case that are at times hard to believe are true.