The Times says the Ann Arbor professor will testify against an accused portfolio manager:Dr. Gilman is cooperating with the government and has entered into a nonprosecution with the United States attorney’s office in Manhattan, meaning that criminal charges will not be brought against him.
As a $1,000-per-hour consultant, Dr. Gilman is said to have given a Wall Street contact useful details about the trial from 2006-08, writes Juliet Chung of the Journal.
The SEC said Dr. Gilman also gave Matthew Martoma the final results of the trial before the public July 2008 announcement of the results.
Martoma, a former portfolio manager at CR Intrinsic, used the information to trade large blocks of Elan and Wyeth shares, authorities say. He's accused of gaining $276 million in profits and averted losses.
FBI agents arrested Martoma, 38, early Tuesday at his home in Boca Raton, Fla., according to Peter Lattman of The Times.
Dr. Gilman consulted 42 times with the portfolio manager, “eventually coming to view Martoma as a friend and pupil,” according to the complaint reported by the Journal.
He is associate director of the Michigan Alzheimer’s Disease Research Center at the university's medical school and was a long-time chair of the neurology department. He earlier taught at Harvard University Medical School and Columbia University.
