An Indian-origin portfolio manager, convicted for his role as the “central figure” in the most lucrative insider trading scheme in US history, should be ordered to forfeit about USD 9.4 million and pay a fine, federal prosecutor Preet Bharara has told court.

Mathew Martoma, 39, was convicted in February of one count of conspiracy to commit securities fraud and two counts of securities fraud.

A former portfolio manager of CR Intrinsic Investors, a division of hedge fund giant SAC Capital, Martoma will be sentenced on September 8.

Manhattan’s top federal prosecutor Bharara had argued earlier that Martoma should be sentenced to more than eight years in prison.

In papers submitted before US District Judge Paul Gardephe in the federal court here, Bharara said Martoma should forfeit his 2008 bonus totalling $9.4 million and the court should also impose a fine on him.

Bharara said while the $9.4 million forfeiture judgment exceeds Martoma’s reported net worth of approximately $7.4 million, the forfeiture only requires him to return ill-gotten gains.

“...This is a serious offense — the most lucrative inside trading offence ever proven — and the penalties imposed by the Court should reflect that....Accordingly, the government respectfully requests that the Court impose a fine in addition to the forfeiture,” Bharara said in the court papers.

The fine in this case ranges from $20,000 to $570 million, which is the amount representing twice the gains to SAC Capital through the insider trading offence.

The Probation Department has recommended a fine of $20,000.

In June, Bharara had asked the federal court to sentence Martoma to more than eight years in prison for collecting confidential information about a high-profile Alzheimer’s disease drug trial and making profits and avoiding losses of $275 million for SAC Capital.

Martoma, a father of three, had earned the $9.4 million bonus for himself due to the various trades he did for SAC.

“Martoma was the central figure in the most lucrative insider trading scheme ever charged. Over a period of approximately 18 months, the defendant cultivated and corrupted two doctors legally bound to guard confidential information concerning a high-profile drug trial, ultimately obtaining an advance preview of the highly anticipated public announcement of the results,” Bharara said.