Martoma Prosecutors Could Get Doctor's Files Soon

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.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note