Tuesday, 26 July 2016
Last updated 48 min ago
Sep 6 2013 | 11:43am ET
A prominent New Jersey Alzheimer's disease doctor passed confidential information to a former SAC Capital Advisors portfolio manager, according to published reports.
Joel Ross is the man identified as "Doctor-2" in the revised indictment against Mathew Martoma, unsealed late last month. Unlike Martoma's other alleged source for tips about Alzheimer's drug trials, Ross has not been accused of any wrongdoing.
Ross is the founder of the Memory Enhancement Center in Eatontown, N.J., a clinical professor at the Mt. Sinai School of Medicine and a proponent of the use of experimental medicines to treat Alzheimer's. As with Sidney Gilman, the former University of Michigan medical professor who has admitted to passing Martoma tips, Martoma met Ross through an expert-networking firm which was not indentified.
And as with Gilman, Martoma's alleged primary interest with Ross was bapineuzumab, an Alzheimer's drug being developed by Elan Corp. and Wyeth LLC. Martoma is accused of illegally-trading shares of those company, earning or saving SAC a combined $276 million; the allegations are also at the heart of the criminal insider-trading case against SAC.
According to the indictment, Ross gave Martoma confidential information about drug trials, including those into bapineuzumab. The two men also met after Ross was briefed on those trial results.
In exchange, the indictment alleges, Martoma "would assist Doctor-2 in obtaining additional clinical trial business." Ross' identity was first reported by The Wall Street Journal.
Martoma has pleaded not guilty and refused to cooperate with prosecutors; he is set to face trial beginning Nov. 4.