- News Home
27 November 2013 12:59 pm ,
Vol. 342 ,
The new head of the National Center for Science Education promises to "fight the good fight" against attacks on...
Analyses of the H7N9 strains isolated from four new cases show that the virus is evolving rapidly, heightening anxiety...
In 2009, Jack Szostak shared a Nobel Prize for his part in discovering the role of telomeres, the end bits of...
Science has exposed a thriving academic black market in China involving shady agencies, corrupt scientists, and...
Paper-selling agencies flourish in the aura of reputable businesses. For some scientists, it may be difficult to tell...
Featuring the first lunar rover in 40 years, Chang'e-3 is seen as an important milestone on China's quest to send a...
Data collected by satellites and floating probes have chronicled a 2-decade rise in the temperature and thickness of a...
Cholesterol, the artery-clogging molecule that contributes to cardiovascular disease, has another nasty trick up its...
- 27 November 2013 12:59 pm , Vol. 342 , #6162
- About Us
Michigan Neurologist Implicated in Insider Trading Case
22 November 2012 12:55 pm
Federal authorities filed charges this week in what they said is the most lucrative insider trading scheme in history, according to The New York Times:
Mathew Martoma, a former portfolio manager at CR Intrinsic, a unit of [the hedge fund SAC Capital Advisors], was charged with making more than $276 million in a combination of illegal profits and avoided losses by obtaining secret information from a doctor about clinical trials for an Alzheimer's drug being developed by the companies Elan and Wyeth.
The drug in question is bapineuzumab, a once-promising Alzheimer's therapy that ultimately yielded disappointing results in clinical trials. According to documents filed by the Securities and Exchange Commission, Martoma received "actual detailed results of the clinical trial" in advance of a 2008 public announcement regarding the trials from Sidney Gilman, a professor and former chair of the neurology department at the University of Michigan Medical School in Ann Arbor who served as chair of the trial's Safety and Monitoring Committee. Gilman, who received nearly $108,000 for his consultations with Martoma from a New York-based firm that connects investors with technical experts, is cooperating with authorities in exchange for nonprosecution.
Based on the insider information that Gilman provided, Martoma allegedly invested more than $700 million in the companies' stocks when the prospects for bapineuzumab looked good, and later unloaded more than $960 million worth of stock in just over a week when the news turned bad.
*Correction 11:30 a.m., 26 November: Sidney Gilman is a former chair of the neurology department. He does not currently chair the department, as was previously reported.