insider trading

University of Michigan / University of Michigan

A former University of Michigan Medical School professor told a New York jury that he was “ashamed” of his role in an insider-trading case.

Sidney Gilman was an Alzheimer’s researcher at the university with major credentials; the 81-year-old neurologist worked at Harvard, Columbia and then Michigan, where he chaired the neurology department.

Now, the retired professor is a key witness against portfolio manager Mathew Martoma from SAC Capital, a Connecticut-based company.

During his testimony on Tuesday, Gilman said he gave Martoma secrets about a trial for an Alzheimer’s treatment from 2006 to 2008.

As Michigan Radio's Kate Wells reported in 2012, that information was pretty valuable to Martoma and SAC Capital – to the tune of $276 million:

User: Brother O'Mara / flickr

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Former U of M doctor to testify in insider trading case

A former University of Michigan neurologist could serve as a key witness in an insider trading case.  SAC Capital Advisors has been charged with wire fraud and securities fraud.  According to Michigan Radio’s Steve Carmody, “one of the hedge fund portfolio managers indicted for securities fraud allegedly obtained information about a new Alzheimer’s drug from a University of Michigan neurologist in 2008.”  Dr. Sidney Gilman advised the company that the experimental drug was not going to be successful.

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UM Photo

A huge Connecticut-based hedge fund owned by an embattled billionaire is facing insider-trading charges.    And a former University of Michigan professor may have played a part. 

University of Michigan Health Systems

You're an 80-year-old famed neurologist at the University of Michigan. You're a giant in your field, with a list of honors and awards as long as your arm. You're such a big name in Alzheimer's research that major drug companies ask you to run their clinical trials.

And then you blow it all by giving secret information to a hedge fund investor in what the FBI and the SEC are calling most lucrative insider trading scheme ever. 

But, why?

The Money