| NEW YORK
NEW YORK Jan 22 An octogenarian doctor who is
the government's star witness in the insider trading trial of
Mathew Martoma said Wednesday he did not remember details of a
key meeting with the SAC Capital Advisors trader until two weeks
Sidney Gilman, 81, said that when investigators first
questioned him, he did not recall the 2008 meeting.
"Ultimately" he recalled aspects of the meeting, he said, some
as recently as two weeks ago.
"There still remains some holes in my memory, though,"
Gilman was testifying in the trial of Martoma, whom
prosecutors accuse of using inside information about the trial
of an Alzheimer's drug to trade on the stocks of two drug
Martoma, a former portfolio manager in SAC's CR Intrinsic
Investors division, is one of eight current or former employees
of SAC Capital Advisors to face criminal charges for insider
trading. He has denied wrongdoing.
SAC Capital, headed by Steven A. Cohen, has agreed to pay
$1.8 billion in criminal and civil settlements and plead guilty
to fraud charges stemming from insider trading by its employees.
Central to the case against Martoma, 39, is the extent to
which Gilman gave him the final results of the drug trial before
he presented them publicly on July 29, 2008.
Earlier in the trial, Gilman had said he told Martoma the
results over the phone on July 17. But during his testimony
Wednesday, he said Martoma later visited him in his office in
Ann Arbor, Michigan, to review a draft slide presentation about
"I showed him the slide set that was then current," Gilman
told Arlo Devlin-Brown, the lead prosecutor.
Under questioning by Devlin-Brown, Gilman said he had not
recalled the meeting at first, but said his memory had evolved
since first being asked about the meeting.
Later on Wednesday, Martoma's lawyer, Richard Strassberg,
focused on the extent Gilman discussed the trial results with
others, including findings that the drug could cause a patient's
brain to swell.
Gilman confirmed that after April 2006, patients who were
enrolled in the study were told on a non-confidential basis of
the possibility of developing the side effect.
Strassberg also showed jurors an email from Dec. 31, 2006,
in which Gilman discussed the trial with an ABC news reporter,
saying the "therapy is being tolerated despite some adverse
events among some of the subjects."
Strassberg was to continue his cross-examination of Gilman,
who is testifying under a non-prosecution agreement, on
Earlier Wednesday, Gilman also told prosecutors that the
last time he saw Martoma was July 30, during a lunch arranged
through Gerson Lehrman Group, the consulting firm that arranged
for all of their paid consultations.
At the lunch, Gilman said Martoma asked him if he had heard
about Elan's stock dropping after the drug trial results were
presented, a fact Gilman said he didn't know
"Well, it dropped like a rock," Martoma said, according to
Martoma "didn't seem surprised," Gilman added. After that,
Gilman said he didn't see Martoma again, a circumstance that
"Well, I thought we were friends, and I thought he'd be in
touch just to say hello," he said.
The case is U.S. v. Martoma, U.S. District Court, Southern
District of New York, 12-cr-00973.