The key witness in the insider-trading case against former SAC Capital Advisors portfolio manager Mathew Martoma could take the stand today.
Sidney Gilman, a former medical professor at the University of Michigan, is expected to testify that he gave Martoma confidential information about Alzheimer's drug trials. Martoma is accused of using that information to trade two pharmaceutical shares, earning or saving SAC some $276 million in what prosecutors have called the "most lucrative" insider-trading scheme in history.
Gilman is cooperating with prosecutors. Martoma's lawyers told the jury in their opening statements that the entire case would hinge on Gilman, whom they say is testifying against Martoma to save his own skin.
Gilman's testimony will follow that of another doctor, Joel Ross, who told the jury that he also gave Martoma insider information about the drug trials. Ross also said he was surprised about how much Martoma knew about the trials; prosecutors say he got the information from Gilman.
Two other witnesses took the stand yesterday: SAC compliance officer John Casey and former Elan Corp. scientist Enchi Liu. Casey said that Martoma attended at least two annual compliance sessions held by SAC, in 2007 and 2008, during which he went over insider-trading regulations. Liu, apparently setting the stage for Gilman, testified that the doctor—who served as chairman of the drug trial's safety committee—was bound by confidentiality agreements.