Back in November, we learned that former SAC Capital employee Mathew Martoma had cultivated a relationship with University of Michigan doctor Sid Gilman, from whom Martoma received material non-public information about clinical drug trial results, which contributed to him being accused of orchestrating “the most lucrative insider-trading scheme ever.” Over the course of the next several months, it came out that Martoma and Gilman were fairly tight, so the news yesterday that Martoma was actually pumping a second doctor on the side for inside information was a bit of a shock. Imagine our surprise to learn this morning that in fact Martoma was soliciting not one, not two, not three, not four, not five, not six, not seven, not eight, not nine, not ten, not eleven, not twelve, not thirteen, not fourteen, not fifteen, not sixteen, not seventeen, not eighteen, not nineteen, but TWENTY doctors for material non-public information. That, to use the proper medical term, he was a regular doctor-whore about town.
A former hedge-fund portfolio manager accused of carrying out a record-setting insider trading scheme has been accused in New York of soliciting illegal inside information from more than 20 doctors. A rewritten indictment unveiled yesterday against Mathew Martoma says he pursued illegal information from doctors from 2006 to 2008 while he worked at SAC Capital Advisors. He has pleaded not guilty to conspiracy and securities fraud and is free on bail.
It’s one thing to do the work to identify, target, and ultimately pump one or two doctors for information to use for insider trading purposes. But twenty? Martoma was clearly casting an extremely wide net, and not only going after doctors taking part in drug trials but:
- Chatting up college professors with doctorates in philosophy that he met at local wine bars.
- Feeling out his dentist during routine cleanings.
- Intentionally bumping cars in front of him if they had the “MD” designation on the license plate, just to initiate conversation.
- Following Matt Leblanc on the street and asking him if he could get into Dr. Drake Ramoray character so they could chat.
- Taking his dog to the vet and engaging in dialogue à la this: “So I have one more question for you. And it’s not about Spot…”
Ex-SAC guy pumped 20 docs for info: US [NYP]