Doc. Says Martoma Knew Test Results In Advance

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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR