Supreme Court rejects insider trading appeal brought by SAC's Martoma

The U.S. Supreme Court on Monday rejected an appeal by Mathew Martoma, a former portfolio manager for billionaire Steven A. Cohen, challenging a conviction for insider trading.

The Supreme Court left in place a June 2018 ruling by the New York-based 2nd U.S. Circuit Court of Appeals, which found there was enough evidence to establish Martoma’s guilt despite defective jury instructions in the trial. Martoma had worked at the CR Intrinsic Investors unit of Cohen’s SAC Capital Advisors LP.

At issue in the appeal was whether the prosecution must prove insider trading by showing that the individual who supplied a tip sought personal gain or intended to confer a benefit to someone else. read more »

Fatal flaw in Boeing 737 Max traceable to one key late decision

Test pilots, engineers and regulators left in the dark about changes to MCAS system that would play a role in two deadly crashes

The fatal flaws with Boeing’s 737 Max can be traced to a breakdown late in the aircraft’s development when test pilots, engineers and regulators were left in the dark about a fundamental overhaul to an automated system that would ultimately play a role in two deadly crashes.

A year before the plane was finished Boeing made the system more aggressive and riskier. While the original version relied on data from at least two types of sensors, the ultimate used just one, leaving the system without a critical safeguard. In both doomed flights pilots struggled as a single damaged sensor sent the aircraft into irrecoverable nose-dives within minutes. read more »

Home Health Agency Plead Guilty to Kickbacks Conspiracy Charges

Husband and wife co-owners of a Chicago-area home health agency pleaded guilty today for their roles in a scheme to obtain millions of dollars in Medicare reimbursements through the payment of kickbacks for patient referrals. read more »