Ex-fund manager got help from multiple doctors, US alleges

NEW YORK — A former hedge fund portfolio manager charged with carrying out a record-setting insider trading scheme was accused in a rewritten indictment Thursday of trying to corrupt more than 20 doctors into providing an inside edge on a secret clinical trial.

The superseding indictment in US District Court in Manhattan said Mathew Martoma succeeded in getting at least two doctors to provide illegal information in a scheme that stretched from 2006 to 2008 while he worked at SAC Capital Advisors. The Boca Raton, Fla., man has pleaded not guilty to conspiracy and securities fraud and is scheduled to appear in court Friday. He is free on bail.

Martoma was arrested in November on charges he persuaded a medical professor to leak secret data from an Alzheimer’s disease trial. Prosecutors said the inside information enabled other investment professionals at the hedge fund founded by Steven A. Cohen to earn a quarter-billion dollars illegally.


In the latest copy of the indictment, prosecutors say Martoma also got information from a second medical doctor who was a clinical investigator for the drug trial.

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The indictment said the doctor, identified in court papers only as ‘‘Doctor-2,’’ treated Alzheimer’s patients with a drug and then monitored the mental and physical condition of the patients afterward.

It said Martoma had about 42 consultations with Dr. Sidney Gilman, who has been identified in court papers filed by the Securities and Exchange Commission. Gilman, a professor of neurology at the University of Michigan Medical School, served as chairman of a safety committee overseeing the clinical trial.

The indictment said Martoma exploited his relationship with the doctor to gain inside information about the drug trial.

It said the second doctor provided confidential information about the trial and other Alzheimer’s disease drug trials.