Matthew Martoma, a former portfolio manager at SAC Capitol Advisors, was sentenced to nine years in prison on Monday due to charges of insider trading.

The incident involving Martoma is now tagged by authorities as the biggest insider trading scheme in U.S. history.

The insider trading of pharmaceutical stocks reportedly brought about US $275 million gain for SAC, according to U.S. District Judge Paul Gardephe in New York.

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Gardephe said that he couldn't ignore the fact that the insider trading scheme involved hundreds of millions of dollars, which is the largest amount "seen in an insider trading prosecution."

The sentence was ruled amid leniency appeals by Martoma's lawyer, Richard Strassberg who reasoned "fragile family circumstances."

In addition to serving nine years in prison, Martoma was also fined U.S. $9.3 million and the forfeiture of his Boca Raton, Florida house.

Under federal sentencing guidelines, the 40-year-old Martoma would have faced up to 19-1/2 years in prison. However, Gardephe clarified that the aforementioned sentence is only for criminal enterprise leaders and repeat offenders.

Martoma was convicted by a jury in February of charges related to securities fraud and conspiracy. He made no comment as he left the court hand in hand with his wife.

Meanwhile, Martoma's family are both devastated and enraged about the judge's decision.

Martoma's parents claimed their son was wrongfully convicted, adding that SAC founder Seven A. Cohen should be the one imprisoned instead of Martoma.

"He was framed," Martoma's mother, Lizzie Thomas, said.

His parents added that Martoma received a harsher penalty than the others convicted because of his Indian heritage.

In 2013, SAC  agreed to pay for criminal and civil settlements amounting to U.S. $1.8 billion and pleaded guilty to fraud charges after eight of its employees were convicted.

Subsequently, the scandals caused SAC to change its name to Point72 Asset Management, a family office managing Cohen's fortune.

TagsSAC, insider trading, matthew martoma, business news, steven cohen