Prosecutors finalizing agreement with U-M for access to Dr. Sidney Gilman's computer files
Federal prosecutors are working with the University of Michigan to gain access to the computer files of Dr. Sidney Gilman, a former neurology professor at U-M's Medical School implicated in a lucrative insider trading scheme, the Financial Times reported.
Dr. Sidney Gilman
Courtesy U-M
The information lead to a stock trade that garnered SAC more than $276 million in profits, according to the report.
U-M has refused to give U.S. prosecutors and lawyers for Martoma the encryption key to decode files on Gilman's laptop citing its responsibility to protect patient confidentiality, according to the report.
The Financial Times referred Gilman's computer files as "pivotal" in the investigation of Martoma.
University of Michigan Health System spokesman Pete Barkey said the organization is in the process of finalizing the agreement with the U.S. Attorney's Office by June 17, according to the Financial Times report.
Gilman retired from U-M about a week after the news broke of his involvement in the insider trading scheme in November. Gilman, who is cooperating with authorities, had entered into a non-prosecution agreement with the U.S. Securities and Exchange Commission.
Amy Biolchini covers Washtenaw County, health and environmental issues for AnnArbor.com. Reach her at (734) 623-2552, amybiolchini@annarbor.com or on Twitter.
Comments
Trepang674
Thu, Jun 13, 2013 : 12:19 p.m.
Sounds like U of M is covering up something here...perhaps this could be the tip of the iceberg.
Wondering
Wed, Jun 12, 2013 : 1:09 p.m.
To engage in the biggest insider trading scheme in U.S. history seems hard to defend as a "naive mistake".....as a poor senior citizen taken advantage of by the nasty sharks out there. This behavior is patently illegal, and has huge implications for our financial system. It is also the case that folks who choose to cross the line, especially in such a clear violation of the most basic professional ethics, often choose to cross those lines in more than one area. It seems like a fairly big assumption that at least warrants investigation that the biggest insider trading scheme in U.S. history was a single isolated incident and with no implications for research integrity or patient well-being. The University has a very important role here--not just to publish the guidelines, but to provide the oversight and leadership that ensures that those guidelines are followed, and to enforce meaningful consequences when they are not.
PineyWoodsGuy
Wed, Jun 12, 2013 : 4:06 a.m.
By their votes, Why do some posters vote thoughtful posts done and defend Gilman? Is it some sort of sentimental notion? Illegal is Illegal. Cross the line and you, rightfully, should lose your defenders.
PineyWoodsGuy
Wed, Jun 12, 2013 : 3:27 a.m.
What I wonder about is Why Gilman, a senior citizen with a distinguished career and tons of TIAA-CREF money salted away (due to his hard work and long hours in the research lab) would Sell Out and participate in a Wall Street scheme that even a Med School First Year Student would recognize as illegal. Why? Is it true (to use a Sicillian expression) that: "Pigs get fed; Hogs get slaughtered"?
Jay Thomas
Wed, Jun 12, 2013 : 3:13 a.m.
I noticed he was selling his penthouse condo in sloan plaza on the real estate section of this very site. Apparently he didn't care to have his view blocked by the new monstrosity they are building next door.
An Arborigine
Wed, Jun 12, 2013 : 2:04 a.m.
Go to jail, go directly to jail, do not pass go...
Dirty Mouth
Wed, Jun 12, 2013 : 12:34 p.m.
If he goes to jail, I'll wear a dress.
JRW
Wed, Jun 12, 2013 : 2:15 a.m.
Not a lot of rich doctors end up in jail regardless of their crimes.
Dirty Mouth
Wed, Jun 12, 2013 : 1:28 a.m.
Child Pornography, Insider Trading? Geez, University of Michigan really knows how to pick 'em!
StraightTalk
Wed, Jun 12, 2013 : 12:48 a.m.
Everyone is quick to judge, but insider trading is very complex and there are a lot of gray areas. Dr. Gilman is an important scientist who was misled by a clever trader. Doctors are schooled in medicine, not in SEC regulations. The University could both cooperate and support him but they are too cowardly for that. They want to protect their administration, not their long-time employee.
trespass
Wed, Jun 12, 2013 : 12:39 a.m.
The Chief Compliance Officer for the hospital is Jeanne Strickland. She is in charge of making sure that the hospital complies with HIPAA. She was also the one who sent the child porn case to the hospital lawyers, who shut down the investigation. The problem of secrecy at the hospital has still not been solved.
Brad
Tue, Jun 11, 2013 : 11:55 p.m.
But you have to admit that no matter what else happens, he still has a future in those "4 out of 5 doctors" commercials.
An Arborigine
Tue, Jun 11, 2013 : 11:40 p.m.
Former Dr. G ought to be a politician with his propensity to evade the truth.
Brad
Tue, Jun 11, 2013 : 10:36 p.m.
Refusing to comply with U.S prosecutors? Sounds like someone from the U needs to go in the slammer for contempt of court. For the "common good" you know.
Nicholas Urfe
Tue, Jun 11, 2013 : 9:50 p.m.
Very often the wealthy get excused from prosecution, or prison time. Here we have someone who entered into a "non prosecution" agreement and apparently was not even required to admit any guilt. Do you think you would have been treated so well?
sheri barron RN,BSN
Tue, Jun 11, 2013 : 9:05 p.m.
It took them that long to get the files? I had to give Umich my facebook password right away. If you delete it so they can't have the information- you are in big trouble. tampering with evidence.
sheri barron RN,BSN
Wed, Jun 12, 2013 : 3:11 a.m.
Umich asked for my password. I had to give it to them. I will try and post the documents on my vimeo site tomorrow.
JRW
Wed, Jun 12, 2013 : 2:14 a.m.
What does your facebook password have to do with your job? Isn't it a private activity outside of work?
sheri barron RN,BSN
Tue, Jun 11, 2013 : 11:05 p.m.
google it. It is a crime if you don't. www.lawyers.com had an article about it. www.vimeo.com
Brad
Tue, Jun 11, 2013 : 10:20 p.m.
You seriously had to give up your Facebook credentials?
treetowncartel
Tue, Jun 11, 2013 : 8:43 p.m.
Unbelievable that they let him retire, should have fired him Johnny on the spot or at least put him on leave. Any idea if the Board of Medicine is going after his license?
sheri barron RN,BSN
Wed, Jun 12, 2013 : 3:22 a.m.
I do not know about 'medical errors.' An incident report has to be made if one occurs. I do not know where those are kept. I just had a Umich lawyer say in court- see vimeo.com- that the first act of workman's comp is filling out an incident report- so essentially he said it was OK that Umich HR told my state farm adjuster that I had been on workman's compensation. I have never been on workman's compensation in my life. I wonder if nurses now will think twice about filling out incident reports. The nurses that I were referring to could have been charged with attempted theft and looking at documents that they were unauthorized to look at.
JRW
Wed, Jun 12, 2013 : 2:12 a.m.
Sherri, I've never read publicly about any medical errors that UM has made or admitted to. It's all hush hush. I wonder if the media can even get this info. About 200,000 people die every year in the US from medical errors and UM no doubt has its share. Why don't we have a list of hospitals, and the # of medical errors resulting in death? That might be a good indicator of whether a given hospital is worthy of our business as patients.
sheri barron RN,BSN
Tue, Jun 11, 2013 : 9:26 p.m.
I know of nurses that are now working at the State Prison (instead of being fired), any connections? I heard they can work there for 5 years and then add their time at the U and have two retirements. I think it is Umich's way of keeping them quiet. I wish someone would investigate this because it really does not seem right to me. If Umich really always admits their mistakes and says 'they are sorry' there would be no need to do this sort of thing.
trespass
Tue, Jun 11, 2013 : 9:06 p.m.
Keep in mind that the University also let Susan Balkema, Adil Daudi, Margaret Marchek from the Hospital General Consel's Office resign voluntarily. The University spokesman even said that none of these resignations had anything to do with the child pornography scandal. The General Counsel was also allowed to resign her position and move to the law school but it had nothing to do with the child pornography scandal. That is the University's way of doing things. To Heck with the next employer, just as long as they leave UM.
trespass
Tue, Jun 11, 2013 : 8:31 p.m.
There are exeptions in HIPPA for disclosures for law enforcement. http://www.dhhs.gov/hipaafaq/permitted/law/505.html This should have been a very simple agreement to negotiate unless the University is trying to carve out exceptions to protect itself from disclosures or liability. You could imagine cirmcumstances where the University might have liabiity for the grant money it recieved to support the research, for example. Given the recent cover ups of the child pornography and other misconduct, the Board of Regents should take responsibility for changing this corrupt atmosphere. Start by releasing the report of the investigation of the child pornography.
seldon
Tue, Jun 11, 2013 : 9:04 p.m.
"HIPAA"
Ricardo Queso
Tue, Jun 11, 2013 : 8:30 p.m.
No need to ask the University. Just go to the NSA!
Wondering
Tue, Jun 11, 2013 : 8:04 p.m.
I would like to see this investigation also determine whether such conflicts of financial interest also influenced decisions regarding research findings and recommended clinical treatments for patients. This is a crucially important area where the University must exercise very strong oversight to protect research integrity and patient health/well-being.
jmac
Tue, Jun 11, 2013 : 7:34 p.m.
This is exactly the kind of stuff we're told NOT to do as employees of the University of Michigan. Somehow Dr. Gilman didn't get, or conveniently forgot, the message. And UM can provide the needed info to Federal Prosecutors without sacrificing patient confidentiality. They just need to de-identify anything to do with patient IDs, it's not that difficult!
Goober
Tue, Jun 11, 2013 : 8:31 p.m.
I believe it's called arrogance.
mkm17
Tue, Jun 11, 2013 : 7:18 p.m.
Shame on Dr. Gilman for his egregious ethical actions. I am especially angry with Dr. G because he took care of my Mom when she had Alzheimer's disease.
GoNavy
Wed, Jun 12, 2013 : 11:35 a.m.
@Basic Bob: Contrary to what you might believe, insider trading is about as close to a victimless crime as you can get. Don't take my word for it: Look into it for yourself.
Basic Bob
Wed, Jun 12, 2013 : 12:50 a.m.
A quarter billion dollars stolen from other people erases a whole lot of good will.
mkm17
Tue, Jun 11, 2013 : 7:41 p.m.
Excellent point, bckramer. Thanks for a (much needed) reality check.
bckramer
Tue, Jun 11, 2013 : 7:27 p.m.
Any wrongdoings Dr. Gilman may be guilty of do not negate all the good he has done in his long career. Your mother was very fortunate to have had him as her physician, as was my own mother.