matthew martoma is not his name.is -- >> glad you brought that up. >> basically -- for viewers and listening that don't know, expelled from harvard law school for conspireing to change his bs to as. when they investigated him reportedly created a fake computer forensics company to then say, look, harvard, no. i did not go into -- he changed his name. got accepted to stamford, graduated with an mba. matthew martoma is not his real name regard shocking back story. weren't of the big questions during this trial was whether these facts would be introduced at trial. ultimately they were not. yes, matthew martoma, a successful harvard law school student applied ironically for clerkships to a number of judges around the country. was in the process of going through those interviews and selection processes and actually was on the verge of being offered a job by a judge, but falsified his harvard law school transcript. falsified it to make his grades look lightly better. irony, getting b pluses, a minuses and wanted them up a

. >> us and as we get that verdict, we will get to you in the sec case involving matthew martoma. we look at what will likely happen with the debt ceiling with dean baker. ,"at is next when "bottom line on bloomberg television, continues in just a moment. ♪ >> the suspension of the federal debt limit, which congress enacted back in october is scheduled to expire on friday. will republicans allow a debt limit increase without concessions? dean baker is codirector for the center of economic and policy research and he joins us from washington. good to have you back on the broadcast. where are we in the debt ceiling debate, headed for another train wreck> >> it is hard to imagine. the republicans have done this strategy a couple of times and it has not worked out politically in the sense that they have paid a big price. 20 11, they got a lot of concessions from president obama, put in place a sequester, reduce spending, they got back, but paid a price then and last fall they paid a huge political price. people overwhelmingly blamed republicans. i do not think they want to go there aga

matthew martoma.ere are many people that felt the case was very strong against matthew martoma from the a lot of people expected a guilty verdict throughout, the yesterday the jurors were sending out questions, and some of the questions gave the defense reason for optimism. they were expressing hopefulness yesterday. things went south quickly this afternoon, and they found him guilty on all three counts. >> this does not mean that the feds are any closer to the big fish, does it? this is something that we have talked about is a consistent theme. we have seen prosecutions for a lot of the people around steven cohen, but he remained untouched. does this conviction change that at all? >> it is fair to say that prosecutors did not expect the case to go to trial. they thought by charging matthew martoma, he would deliver a case against steven cohen, his former boss at sac, but matthew martoma surprised everyone, if used to cooperate with the government, and ended up convicting him. he could always decide t

but having said that, if you are able to sit down with matthew this-- matthew martoma evening and hisamily, what advice would you offer them? >> get a good appellate lawyer. make sure you read all of the instructions. i know there were questions about some of the instructions in this case, what material mean, what happens if you have a combination of getting information from legitimate research, but also the other information you get inside. he will not win this appeal based on challenging the credibility of the witness. you might also challenge the relationship between the government and the witness. what kinds of discussions are between the lawyer and the lawyer for the witness? that the judge gave some of that information. i would say, don't lose hope. this may be your last chance to make a deal. some are saying, i will not make a deal and others say, i can't because i don't have enough information. and some say, i will talk. i will make up stories. the first new do is to sit down with the client, outside the presence of his family, because he will not tell you the whole truth in f

the case of matthew martoma having gone to the jury.you expand a little bit more on how you read the current climate of juries when it comes to insider trading cases? >> i think juries understand that it should be illegal. even though people say everyone does it, it is like steroids in sports. some people have told me we have to do it. otherwise the playing field is not level and our clients are at a disadvantage. that is not the way it should be done. jurors understand that. jurors in the southern district of fairly sophisticated but in the end, it will come down to whether they believe the witnesses for the government or they believe they defended it not really engage in this kind of insider trading. no one can predict the outcome of the case. the folks at sac are sitting nervously around because often went to get a conviction, you see some cooperation. that cooperation can lead to further prosecution. his case is probably a long way from being over. >> you talked about the concept that everybody does it. the level playing field. and

. >> matthew martoma has been found guilty. it may make it less likely that rosecutors will go after steve cohen. it is looking like this may be the last conviction against s.a.c. >> ryan, you're watching sochi on the games. almost a proxy for putin's hold on russia. >> the games get underway in 8 1/2 hours. that is when the opening eremony kicks off. it could benefit from the games on increased traffic. you have what manus was talking about. the time to get into the emerging markets. jim o'neill saying this is a buying opportunity. mark mobius saying not just yet. >> we have plenty to talk about on the program. we have u.s. jobs. a little bit of tech. conviction in the u.s. we're watching sochi. what else are we watching? >> goldman sachs caught my eye. they said get ready for a day to watch by the european central bank. there is no reason for the european central bank not to go into an easing mode. that is one thing that caught my eyes. let's go to the nice, big map. there you go. it is a reprieve for equity markets. the pace

the former sac manager matthew martoma found guilty in the most lucrative insiders trading scam ever.ally came down to the allegation that martoma over a period of a year-and-a-half, courted to doctors who are involved in a trial of alzheimer's drugs being tested by two pharmaceutical companies. this is a drug that had a lot of potential, the market was very interested in finding out whether it was going to succeed. the government accused martoma of essentially corrupting to doctors, one particular was involved in the trial, getting details of the drug trial results before anyone else, and then making very lucrative trades on behalf of his hedge fund, sac capital. >> it is the seventh conviction in the probe of sac and steve cohen, the one they really wanted. >> the government never expected martoma's case to go to trial. they felt that he would let them bring them to his former boss, stephen cohen, and martoma has baffled everyone on pretty much all sides by refusing to do that. >> now that martoma has been found guilty, could he still flip? >> his leverage will depend on how much he

. >> i'm sure "closing bell" will have much more on the insider trading conviction of matthew martoma. "the closing bell" begins right now. >>> and welcome to "the closing bell." i'm kelly evans at the new york stock exchange, where traders are hoping the dow can hold these pretty big gains in this final hour, bill. >> so far the best day of the year for the bulls. i'm bill griffith here at cnbc headquarters. i'm not "nightly business report" later tonight. big plug there. that 300-point down day of monday seems like long ago, kelly. we have today positive jobs numbers, the jobless benefits claims were less than expected. and that brought out hope that maybe tomorrow's big jobs report will bring us better news than it did last month. >> big moves in the ten-year treasury rate as well moving up to 2.7%, bill. safe to say expectation are high for that number tomorrow. we're also continuing to monitor what might be the stock story of the day, at least to the downside. take a look, of course, at shares of twitter. down more than 20%. #where'sthegrowth? this is the question investors are a

we're getting closer, you would think to a verdict in the insider trading case again matthew martoma. kate is outside the courthouse live right now. >> reporter: you would think getting close. a nail-biting week in this u.s. versus martoma case. third day of deliberations surpassing people's expectations how long this process would take. a lot of folks expected to see some resolution one way or another yesterday, but they're still at it, and it's been very quiet this morning. no notes to the judge or anything to suggest where their heads may be at. having said that, the defense took some confident from the jury, seeing a transcript alleging some was public at the time passed on to marthoma. he stands accused of three different accounts related to insider trading. two of securities fraud, one of conspiracy. this jury very interesting in terms of its makeup. it seems to be a well-educated somewhat affluent group including an nyu professor, bus driver, aig underwriter and nine others as well as alternates. sue, it's anybody's guess where they'll end up today, but i think people are feeli

a guilty verdict in the matthew martoma trial.action from the courthouse. >> thanks so much, melissa. i'm standing right in front of the courthouse, where earlier this afternoon, matthew martoma was convicted on three different counts. one of conspiracy to commit securities fraud. two of securities fraud, that carries a maximum prison sentence of 45 years. yet to be determined, though. he stands accused of averting losses to the tune of $250,000 in the largest insider trading scheme ever charged by the government. the government has a spotless track record for the last four years in terms of these insider trading cases. u.s. soren for the southern district, having 79 cases with either successful convictions or guilty pleas related to insider trading. nine of those are people who at one time were affiliated with s.a.c. and martoma being the ninth in this case. one interesting thing at the end of court proceedings today on the courthouse steps, there was a bit of a scuffle that emerged between a lawyer on the martoma defense team an

>> matthew martoma, former health care portfolio manager at sc sac capital was convicted guilty of all counts against him. this carries with it a maximum prison sentence of 45 years. he's accused and now convicted of engaging in the largest insider trading scheme in u.s. history at least in terms of profits and averted losses which total in this case a $250 billion. this is part of the ongoing track record of u.s. attorney for the southern disstrict of going after these types of it cases. in just four years, since 2009, barara has either brought guilty pleas or won convictions for 79 individuals at an array of firms for this type of misconduct. nine of those individuals worked at either one point or when the charges were filed for sac capital. now, it was a day of high emotion, obviously, for martoma and his wife. as they left the courtroom being we're showing you video of this right now, there was a scuffle that broke out between probably an overzealous photographer and an associate on the defense team, a woman who was eight months pregnant and it almost looked like there were going t

on wall street the jury begins deliberations on the matthew martoma case. scheme with 200 75 million. prosecutors want the jury to convict. defense lawyers say he is escaped coke because they could steve: -- could not get himself. >> they affect steve cohen when in the closing argument yesterday, saying it is not fair to convict our thoma -- martoma, in theally roadkill government's attempt to get cohen. martoma did not take the stand. it does not send the best message to the generate. if he did not do anything wrong, why did he not take the stand. his defense has followed a very classic insider defense trading playbook. they have tried to argue the witnesses are dishonest and unreliable. they have tried to argue the information he traded on was are ready public. >> what was the strongest case the prosecution made? >> the evidence has always been very strong. they seem to stick to the asics. they review the facts and they mae a little tough for marto to overcome. they said i gave him information they were not supposed to. a lot of evidence he traded on the

matthew martoma, former portfolio manager at hedge fund sac capital was convicted by a federal jury in new york city today on all three insider trading counts that he faced. martoma helped his company net more than a quarter of a billion dollars in profits through illegal trades based on inside information about disappointing results of tests on an alzheimer drug. this was by far the biggest case of insider trading. >>> we have a followup to a story we brought you last night. mixed results from twitter's first ever quarterly earnings report. twitter earned more money than forecast, but it reported a sharp slowdown in new user growth which was less than expected. that spooked investors and the stock plunged today, down 24%, closing at $50 and change. still twitter shares are nearly double november's initial public offering price of $26. bill? >>> our next guest has doubts about the future of twitter at this point. he's ben shakter, senior internet analyst at mccorory research is. ben, you downgraded your view of twitter in december before all of this. what were you looking at at that ti

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e-mails for criminals e-mails or evil he was smart enough not to use an e-mail when he spoke to matthew martoma for twenty minutes after more tell more allegedly received that inside information about why if you want now i want to ask you why is it been so difficult for prosecutors to convict steve cohen personally of insider trading they've gotten a lot of other you know him but not him why because in every case even in the crazy any case you need a lot of witness a lot of coconspirator that was there that can testify against his fellow coconspirator in you had steinberg which is the person i was just recently convicted he wasn't cooperating he had direct access to cohen you have martoma was not cooperating who had the wrecked access to those who are calling i will tell you this that if more tomer is convicted the friends are going to fry is this very like when they don't like losing the big fish now final question yes or no do you think insider trading should even be illegal i think it should be legal it's it's kind of like you know the american economy is really a casino but the casino to ru

ing let's talk about insider trading and matthew martoma and sec. is it hat thatgovernmehat thatgo has to p ve?? >> the governmen>> t trying to do two things in this case.hise. on the one hand, they are trying ve a simple case of insider trading. ---- received information fromtt somebody and that persdy a testified. it is a question of who you believe. if you believe the witness, thew th if you think he ifs givehink hef he if will quit. the ultimate goal is to knockis the dominoes down to seenof de can get to tead oft to t in all these cases, what theyy try to do after the level peoplost in the hope that theyill turn against the upper-level people.people at is they make their cases. i member once rudy giuliani if my case goes to trial i have not done my goal is to make surl is t t every domino falls and there is no one left and everybodefleadsb guilty. that is the way the government tries to bring these cases. . are hard cases to bring because of the concept of willful blindness. oftentimes, people on the tope will say do not tell me wherewhr you go

markets, we're watching the courthouse in lower manhattan on the right-hand side of your screen is matthew martomaading case. >> no coke.

on thursday, matthew martoma was convicted on fraud and security charges. se a.c. reaped more than a quarter billion dollars. some people argue the real target could escape a prison sentence. >> matthew martoma's work as a portfolio manager earned him a $9 million bonus and now the prison sentence of up to 20 years. he worked for the investment company, s.o.c. capitol advices, a firm once the envy of the finance industry. >> the trial gives us insight into how s.a.c. operated. he stayed very close to whatever sources he could find that could give him an edge on information and what was going on. >> the trial revealed he called his boss, founder steven cohen a day after a doctor passed on confidential information about a new alzheimer's drug that produced disappointing results. shortly after that call, s.a.c. began selling off $700 million of shares in the two pharmaceutical companies involved in the drug tests. share prices plummeted, but s.a.c. made millions. cohen faces civil charges by the s.e.c. for failing to supervise martoma and others found guilty of inside

the government wins again in its insider trading probe against former sac capital fundraiser matthew martoma. $275 million in profits. he accused and now -- he was accusing now convicted to trade shares. it is the seventh of action in conviction ineven six years. >> he is not part of this, but things change, cristina alesci, for mr. cohen this morning. cave, heindie martoma said all along he is not going to cooperate with the government, but once you happy conviction and once you -- have the conviction once you have the case, changes the case. >> he faces up to 20 years in prison, so we will see how that plays out. >> our second front-page story. earlier this week it was twitter, now it is linkedin. shares of linkedin down about 8%. first quarter missed analysts' estimates. net income was down 67% in the fourth quarter. let's twitter user growth. >> all the user growth. it is an out of body experience. buy onn "maintaining strong fourth-quarter results, promising outlook, that is totally different from what you just said." >> that is totally, you're absolutely right about that, this is twitt

. >> soc fund manager matthew martoma was found guilty of charges and the largest insider trading case this is the seventh conviction one by u.s. prosecutors. martoma faces as many as 20 years in prison on the most serious counts. show that jobay growth picked up last month from the slowest pace in three years. economists predict that january payrolls rose by 180,000. the unemployment rate is expected to remain at six percent. >> right. jonathan ferro joins us more -- joins us with more. the spread is pretty big. >> spread is massive. sogen, 270k. that is a big call, 270,000. talking about comparing it to pin the tail on the donkey. this is a children game here you put a blindfold on and after pin the tail on where the donkey's tail will be. this is kind of the same thing. it is a hard thing to judge. then ms. in december.-- that miss in december. the most important data in the world. it is backward looking and eight is an indication of market sentiment. bottom line is that the u.s. economy is 70% german by consumer spending. if you want to spend, you need a job. payroll numbers are al

. >>> and former sac capital portfolio manager matthew martoma has been convicted of insider trading. u.s. prosecutors claim he helped insiders more than a quarter of a billion dollars. the month-long trial featured testimony from two prominent doctors who confessed to passing information to martoma in 2008. eats the eighth sac research analyst to be convicted or plead guilty to insider trading. his attorney says they plan to appeal. >>> let's give you a look at what's on today's agenda in the united states. the bulk of everyone's focus, of course, is going to be on that january jobs report. we get consumer credit figures at 3:00 p.m. eastern time. .it's just a handful of earnings today from the likes of apollo global management, cigna and moody's. >>> still to come on the show, it cost $50 billion, protests against the kremlin's anti-gay laws. >> will hosting the winter games pay off for russia? we'll get into it when we come back. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often hande

> among the other stories we're following in the paper this morning, former portfolio manager matthew martoma was found guilty of insider trading yesterday afternoon. a federal jury in new york found that he was guilty on all three of the conspiracy and security fraud charges that he faced. the verdict was the eighth insider trading conviction of a current or former employee of steve cohen's sac capital and raised questions about whether prosecutors will eventually go after mr. cohen himself. >> and what a report. 79-0. >> amazing. >> insider trading, it really is. let's get a check on markets as we count down to the all-important jobs report. we are seeing futures rising a bit on yesterday's gains. joining us, mark vitner. mike hansson, merrill lynch global research. yesterday i was at the new york stock exchange. big rally. dow's best day of the year. traders were talking about optimism on the jobs report. is that justified? >> there's some expectation with the weather story supposedly playing out in december that we get a bounceback. historically, that tends to happen. whether you get basi