NEW YORK (AP) — A doctor testifying at an insider trading trial told a jury on Tuesday that he revealed secrets about the testing of a drug to treat Alzheimer's disease to a large hedge fund's money manager, who paid him $1,500 an hour for consultations.
Dr. Joel Ross testified for the government at the Manhattan federal court trial of Mathew Martoma, an ex-portfolio manager for Stamford, Conn.-based SAC Capital Advisors.
"There was confidential information that I shared with him on more than one occasion," Ross testified.
He said the information was "about the safety and results of certain studies that had not yet reached the public domain."
Martoma is charged with insider trading offenses that the government says earned SAC Capital more than a quarter of a billion dollars. He has pleaded not guilty. The company, founded by billionaire Steven A. Cohen, has pleaded guilty to fraud charges and agreed to pay $1.8 billion. Cohen has not been charged criminally, but regulators have accused him in a civil action of failing to prevent insider trading at the company.
Prosecutors said Martoma, of Boca Raton, Fla., persuaded Ross and another doctor to leak information about the testing of a drug to treat Alzheimer's so he and others at SAC Capital could trade ahead of public announcements.