The prosecution’s star witness against Mathew Martoma testified that he lied about passing inside information to the former SAC Capital Advisors fund manager when he was first questioned by agents of the Federal Bureau of Investigation in September 2011.
'I was so intensely ashamed,' Sidney Gilman, 81, a former University of Michigan neurologist, told jurors in Martoma’s insider trading trial yesterday in Manhattan federal court. 'I was hoping the whole thing would go away.'
Bloomberg reports that later, Gilman said, he told the government the truth, that he had kept Martoma informed in 'minute detail' about adverse effects of bapineuzumab, a drug intended to treat Alzheimer’s disease, while the drug was being tested on patients, and tipped him off about the final results of the testing in July 2008.
Gilman testified that Martoma typically set up telephone conferences with him within a day or two after the drug trial’s safety monitoring committee, of which Gilman was chairman, met to discuss confidential data. Martoma appeared to be taking careful notes, Gilman testified.
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