Wednesday, 23 July 2014
Last updated 13 hours ago
Jan 16 2014 | 12:47pm ET
A prominent doctor testified yesterday that former SAC Capital Advisors portfolio manager Mathew Martoma appeared to know the results of a disappointing drug test before he did.
Joel Ross, who has admitted passing secret information about the same drug trials to Martoma, told the jury he was "flabbergasted" when he ran into Martoma following a confidential presentation on an Alzheimer's drug in July 2008.
"It was like he was in the room with me, with the slides I had just seen," Ross said. Prosecutors allege that Martoma had already received the results, which were not to be made public until the day after the conference, from another doctor working on the trial, Sidney Gilman. Gilman is set to testify later in the trial.
In the lobby of a Chicago hotel after the "somber" meeting—where Elan Corp. executive Michael Grundman announced "the drug did not work at all," Ross said—Martoma spoke of precise statistical measures from the study.
When Ross told Martoma he was still optimistic, Martoma allegedly replied, "I don't understand how you can say that with the statistical evidence showing otherwise."
"I think he knew the exact numbers," Ross said, adding that it was the last time he saw Martoma.
Ross also spoke of his first contact with the Federal Bureau of Investigation, admitting that he lied when he got a phone call from an agent in 2012. And he faced some tough questions from Martoma's lawyer, Roberto Braceras, who sought to show that the information about the drug was publicly available.
Braceras also questioned Ross about the affect of Martoma's indictment on his drug-trial business. Ross said he had lost significant business.
"Do you think this is about money?" Braceras shot back. "My client's life is at stake here and you're complaining about losing money?"
U.S. District Judge Paul Gardephe sustained an objection to the question.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…