Gerson Lehrman was watching closely as the two kept in contact, logging their phone calls, which often occurred within hours of safety monitoring committee meetings, but not listening in on them. The expert network knew of Gilman's position with Elan and Wyeth and sent him emails warning him not to discuss non-public information. But Gilman and Martoma both disguised the true nature of their discussions. Gilman at one point suggested Martoma tell Gerson Lehrman they were going to talk about Parkinson's disease treatments, not bapi, on their next scheduled phone call.
In fact, according to the feds, "beginning at least in 2007," Gilman was giving Martoma detailed accounts of the drug trial.
In the spring of 2008, Gilman informed Martoma that bapi appeared to be reasonably safe. But in early July, the picture changed, and Gilman told Martoma that patients getting bapi were having adverse side effects. On July 17, the feds allege, he gave Martoma an encrypted PowerPoint summary of the upcoming efficacy results--and the password needed to open it. Before Gilman announced those results to the world eight days later, CR Intrinsic and SAC Capital bailed out of Elan and Wyeth stock. By the feds' tally, those trades netted them $276 million in profits and "avoided losses."