Thursday, 29 January 2015
Last updated 12 hours ago
Jun 13 2013 | 9:50am ET
Prosecutors are nearing a deal that would give them access to the computer files of the former medical professor who allegedly passed tips about drug trials to a former SAC Capital Advisors portfolio manager.
The University of Michigan, whose medical school employed Sidney Gilman for 35 years before his resignation in disgrace in November, is finalizing an agreement with federal prosecutors in New York, the Financial Times reports. A deal is expected by Monday, a day before the judge overseeing Mathew Martoma's trial was to hold a hearing on the matter.
Michigan said it is wary of producing confidential information about drug trials and patients, and has refused to disclose the encryption key to decode the files on Gilman's computer. Prosecutors have argued that his files could be critical to the case against Martoma.
Gilman is working with prosecutors and has admitted that he passed tips about Alzheimer's disease drug trials to Martoma from 2006 through 2008, allowing Martoma to make trades in the two drug companies leading the tests. Martoma allegedly earned or saved SAC a total of $276 million on the trades.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…