Mathew Martoma "corrupted" medical doctors to gain an early look at confidential drug trial results that enabled hedge fund SAC Capital to make more than $276 million in profits, prosecutors said as the trial over the largest insider trading case in history began yesterday.

Mr Martoma, a former portfolio manager for SAC, “sought out an illegal edge”, prosecutors claimed, when he contacted two doctors taking part in a clinical trial for an experimental drug to treat Alzheimer’s disease.

Prosecutors allege Sidney Gilman, chairman of the safety committee for the joint trial by drug firms Elan and Wyeth, gave Mr Martoma the results before they were publicly announced.

Mr Gilman, now 81, is the government's star witness. He was granted an immunity deal in exchange for his testimony. Mr Martoma has pleaded not guilty.
– (Copyright The Financial Times Limited 2014)