SEC charges Gilman in $276M insider trading case
The Securities and Exchange Commission filed civil charges against Sidney Gilman, a neurology professor at the University of Michigan Medical School, alleging insider trading related to discontinued Alzheimer's disease product bapineuzumab. The agency also charged hedge fund CR Intrinsic Investors LLC and Mathew Martoma, a former portfolio manager at CR Intrinsic. According to the suit, Gilman, who was chairman of a safety monitoring committee for a Phase II trial of bapineuzumab, provided Martoma with information and data for bapineuzumab prior to a 2008 "negative public announcement" of results from the trial. The SEC alleges that Martoma and other investors made more than $276 million in profits and avoided losses due to information provided by Gilman. The SEC said it agreed to settle the charges against Gilman in exchange for his cooperation. Gilman will also pay more than $234,000 in disgorgement and prejudgment interest. The suit was filed in the U.S. District Court for the Southern District of New York. The U.S. Department of Justice also filed criminal charges against Martoma. Gilman signed a non-prosecution agreement with the DoJ in exchange for his cooperation. CR Intrinsic is a division of SAC Capital. ...