In reading this article if they have tracked what is said here, this looks like a pretty strong case, especially as the old saying goes,image you follow the money.  One of the advisers from SAC is charged with Inside Trading and now the sources of where his information came from is rolling out. 

Doctors, when they get involved with investors seem to have a big way of getting in trouble.  If you go to the doctor’s website, Memory Enhancement Centers,  here’s his brief profile as listed:

“Joel S. Ross, MD, FACP, AGSF, CMD, CPI, is a primary care geriatrician, Principal Investigator, Founder, and Chief Executive Officer at the Memory Enhancement Center of America, Inc. in Eatontown, New Jersey. He is also a Clinical Associate Professor of Medicine at Mt Sinai School of Medicine, and at the School of Osteopathic Medicine at the University of Medicine & Dentistry of New Jersey in Stratford. He is also President and Founder of the Memory Enhancement Center of New Jersey, Inc. in Toms River and of the Memory Center of New Jersey in Monroe Township. Dr. Ross received his medical degree from the State University of New York Downstate Medical Center in Brooklyn. He then completed an internship and residency in Internal Medicine at Nassau County Medical Center in East Meadow, New York, where he was Chief Resident, and a fellowship in the Department of Geriatrics and Adult Development at Mount Sinai Medical Center in New York, New York. Dr. Ross is a Diplomate of the National Board of Medical Examiners and of the American Board of Internal Medicine with added qualification in Geriatric Medicine.

It sounds like he has years of work related to Alzheimer's research and treatment.  Kind of sad if this is all true as his future may not be so bright.

There’s also a second doctor or researcher Sid Gilman and he’s agreed to work with the government and has a non prosecution agreement and is a neurologist overseeing trials who worked at the University of Michigan.  Gilman passed the information along to the SAC broker that it was going to fail, so what does a hedge fund do?  The sold the stock short, almost all $700 million the fund owned.  This stands to be one the biggest cases of inside trading against an individual filed.  BD 

Former SAC Capital Advisors LP manager Mathew Martoma, charged with trading on illicit tips on an Alzheimer’s drug, got some of his information from New Jersey physician Joel Ross, two people familiar with the matter said.

Ross is the physician identified in the revised indictment against Martoma filed Aug. 22 as Doctor-2, who prosecutors said provided confidential information to Martoma about a drug trial in July 2008, said the people with knowledge of the investigation who weren’t authorized to speak because it isn’t public.

Ross, a geriatrician and clinical associate professor of medicine at Mt. Sinai School of Medicine, is the founder and chief executive officer of Memory Enhancement Centers in Eatontown, New Jersey, according to his website.

The U.S. alleged Martoma used the information from the two doctors, who were involved in the trial of bapineuzumab, or “bapi,” to help the hedge fund make $276 million by trading in shares of Elan Corp. (ELN:US) and Wyeth LLC. The government has called it the biggest criminal insider-trading case against an individual in history.

In the SAC indictment, prosecutors claimed that two unidentified SAC health-care analysts exchanged e-mails with Cohen on April 11, 2008, and the next day about information they’d gotten through a paid consultation with an unidentified clinical investigator on the trial of the Alzheimer’s drug.

In mid-July 2008, Gilman passed Martoma secret data showing that bapi failed to halt progression of Alzheimer’s in patients in the clinical test, the U.S. said.

When Martoma learned that Wyeth and Elan would report negative data on the drug, Martoma had a 20-minute phone call with Cohen, according to the government. The hedge fund owner, at Martoma’s recommendation, sold almost all of the fund’s $700 million position in Elan and Wyeth, then sold the stock short, prosecutors said.


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