Gilman Says Memory Of Key Martoma Meeting 'Evolved'

Jan 27 2014 | 1:12pm ET

Mathew Martoma's insider-trading trial isn't over, but the former SAC Capital Advisors trader's fate may already be sealed.

The government's star witness, former neurology professor Sidney Gilman, completed his testimony against the former hedge fund manager on Friday. Martoma's lawyers suggested in their opening statements that the entire case against Martoma would hinge on whether jurors believed Gilman, who will not be prosecuted due to his cooperation, or not.

To that end, Martoma lawyer Richard Strassberg hammered away at Gilman's credibility. Prosecutors allege that Gilman, who oversaw an Alzheimer's drug trial, was Martoma's key source for confidential information about that test. Strassberg countered that Gilman was simply saying what prosecutors wanted him to in an effort to avoid prison.

Gilman denied that allegation Friday, telling the jury that "nobody was forcing me to do anything." He insisted that his memory simply improved over time—including about what prosecutors have called a crucial meeting between he and Martoma in July 2008, which Gilman had told prosecutors in 2011 and 2012 that he had no memory of.

Gilman said he recalled the meeting by the beginning of last year, and that details about it have since come back to him. "It was an evolutionary process," he said.

Strassberg suggested Gilman only recognized the meeting's importance after prosecutors continued to ask about it.

Martoma's trial is entering its fourth week. Prosecutors said after Gilman left the stand that they could rest their case as soon as tomorrow.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.