The Canadian Press - ONLINE EDITION

Alzheimer's expert from Mich. tells NY jury he lied to FBI out of shame over broker secrets

  • Print

NEW YORK, N.Y. - An Alzheimer's expert testified Tuesday that he was too ashamed to be truthful when the FBI confronted him with claims he fed inside information to a hedge fund manager whose company owned pharmaceutical stocks.

Sidney Gilman, 81, described his dealings with investigators to a New York City jury at the trial of former SAC Capital portfolio manager Mathew Martoma.

During two days of testimony, Gilman has described feeding secrets about a clinical trial for a promising Alzheimer's drug to Martoma, 39, of Boca Raton, Fla.

The doctor said he was "hoping it would go away" when he lied to the FBI in 2011.

"I was intensely ashamed," he said. "I had betrayed my colleagues, myself and my university. I was so ashamed."

He eventually signed a non-prosecution agreement and agreed to testify against Martoma, who is accused of passing along inside information to his colleagues that enabled SAC Capital to earn a quarter billion dollars illegally. The Stamford, Conn.-based SAC Capital is owned by billionaire Steven A. Cohen. SAC Capital has pleaded guilty to fraud charges and agreed to pay $1.8 billion.

Martoma has pleaded not guilty and his lawyers have said the company's decision to sell its position in pharmaceutical companies funding the Alzheimer's drug trial was smart because the bloated stocks were poised to fall regardless of the trial results.

Gilman was a professor of neurology at the University of Michigan Medical School when the FBI interviewed him. He said he retired from teaching more than a year ago so he would not be fired.

He said he lied during an interview with the Securities and Exchange Commission in February 2012 before telling the truth in a follow up interview with the FBI in the summer of 2012.

"I told the government that I had provided inside information to Mr. Martoma in detail, repeatedly," he said. "I expected I would face criminal prosecution."

Prosecutors have portrayed Gilman as critical to the insider trading scheme, saying his position on the drug trial's safety monitoring committee gave him early access to the results, even before he was designated as the person who would deliver them publicly in 2008.

Gilman testified he was "initially euphoric" when he saw the results of the trial and shared information only with his wife and Martoma. A defence lawyer at opening statements earlier in January had said Martoma would have been buying rather than selling if he was basing his trades on what Gilman told him.

A prosecutor asked Gilman if he shared inside information with other financial professionals during consultations that earned him almost as much as his $210,000 teaching salary in 2008.

"Perhaps unintentionally. I may have slipped here and there," Gilman said.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

RMTC preview of Good People

View more like this

Photo Store Gallery

  • Marc Gallant / Winnipeg Free Press.  Local/Standup- Morning Fog. Horse prances in field by McPhillips Road, north of Winnipeg. 060605.
  • A Canada goose makes takes flight on Wilkes Ave Friday afternoon- See Bryksa’s 30 Day goose a day challenge- Day 09- May 11, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google