Alleged inside trader Mathew Martoma was too busy chatting up “experts” on Alzheimer’s research to attend a SAC Capital compliance meeting in May 2007, his lawyer said in court Thursday.
The lawyer, Richard Strassberg, asked Manhattan federal court Judge Paul Gardephe to exclude information about that meeting — at which SAC employees were reminded of the rules about insider trading — because Martoma was on a 49-minute call to a so-called “expert.”
The irony is striking.
Martoma, on trial for insider trading, is alleged to have received illicit tips from one of those expert networkers, Dr. Sidney Gilman.
The illegal tips Martoma got from Gilman allowed SAC to make $276 million in profits and avert losses on pharmaceutical stocks Elan and Wyeth in 2008.
Gardephe agreed to exclude the May 2007 compliance meeting from the trial — which resumes Friday.