Second Martoma tipper identified as trial nears

Witch Doctor

Former SAC Capital Advisors LP manager Mathew Martoma, who faces trial in November on insider trading charges tied to illicit tips on an Alzheimer’s drug, got some of his information from New Jersey physician Joel Ross, two people familiar with the matter said.

Bloomberg News reports that Ross is the unidentified physician in a revised indictment filed against Martoma Aug. 22, said the people, who requested anonymity because they aren’t authorized to speak publicly.

Referred to as Doctor-2, Ross provided confidential information to Martoma about a drug trial in July 2008, the U.S. said.

The U.S. Securities and Exchange Commission has alleged that the other doctor who tipped off Martoma about the drug trials was Sid Gilman, a neurologist who was head of the safety monitoring committee for the drug trial.

Gilman, who worked at the University of Michigan, has entered into a non-prosecution agreement and agreed to cooperate with the government.

The U.S. alleged Martoma used information from two doctors, who were involved in the trial of the Alzheimer drug bapineuzumab, or “bapi,” to help the hedge fund make $276m by trading in shares of Elan Corp. and Wyeth LLC.

The government has called it the biggest insider-trading prosecution of an individual in U.S. history.

Hit the link below to access the complete Bloomberg article:

Second Martoma Tipper Identified as SAC Trial Nears

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images: © Lisamarie Babik, © Alaskan Dude

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