… says Sid Gilman on his University of Michigan medical school page.
You said it. Ever since his insider trading charge, Sid’s been too busy with lawyers to make time for students:
Dr. Sidney Gilman, a neurology professor at the University of Michigan Medical School … was chairman of the safety monitoring committee overseeing the clinical trials of the Alzheimer’s drug.
[Hedge fund manager Mathew Martoma, also charged,] met Gilman some time between 2006 and 2008 through paid consultations, the SEC complaint says. “During these consultations, Gilman provided Martoma with material, nonpublic information about the ongoing trial,” the SEC complaint said.
In mid-July 2008, “Gilman provided Martoma with the actual, detailed results of the clinical trial” before an official announcement on July 29, 2008, the SEC said.
And wow did these guys make a lot of money. Most lucrative insider trading scheme ever.
Details, in case you want to try this yourself.
Martoma allegedly found out from Sidney Gilman, a leading Alzheimer’s investigator at the University of Michigan, that bapineuzumab–then owned by Wyeth and Elan–had failed a key study. Not only did the hedge fund sell all of its shares in the two companies, they shorted the developers as well. And they made a killing when the share price for both cratered on the news. Gilman, who reportedly was connected to Martoma through an expert networking firm that paid him $100,000, is now cooperating with the feds.
Here’s Sid in happier days, sleeping and perchance dreaming of making a killing and then having to try to save his ass by cooperating with the feds.
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Update: A fellow University of Michigan professor comments.
Gilman’s conduct raises fresh questions about firms that match investors with experts in subjects that could move stock prices, said Erik Gordon, a University of Michigan business professor who follows the pharmaceutical industry.
“If the allegations are true, it’s reprehensible conduct for someone who has misused a position of trust,” said Gordon, who added that he doesn’t know Gilman. “This is crookery of really the lowest possible ethical standards. It doesn’t get much lower.”
One does wonder… Here’s a much-venerated man with, you figure, oodles of income. Why do it? Why be so greedy as to risk ruining your life — when you don’t need the money?