Federal prosecutors filed an updated indictment in the criminal insider trading case against a former SAC Capital Advisors portfolio manager, adding a claim that he received secret information about drug trials from a second doctor.
The government said that Mathew Martoma, the former SAC portfolio manager, corrupted two doctors to obtain confidential data about a drug being developed by the pharmaceutical companies Elan and Wyeth.
In November, prosecutors said that one doctor leaked him the results of clinical tests, allowing SAC to earn profits and avoid losses totaling $276 million.
The first doctor, Sidney Gilman, a neurologist at the University of Michigan, has already been named by the government. Prosecutors have agreed to not prosecute him in exchange for his testimony against Mr. Martoma.
Prosecutors said in Thursday’s court filing that a second doctor met with Mr. Martoma as a paid consultant, providing him with secret information. There was a quid pro quo arrangement, the government said, with Mr. Martoma, a health care industry specialist, promising to assist the doctor in obtaining additional clinical trial work.
The doctor has not been charged in the case and was described only as a “co-conspirator.â€
A lawyer for Mr. Martoma, Richard M. Strassberg, declined to comment.
He and federal prosecutors are expected in Federal District Court in Manhattan on Friday morning for a pretrial hearing in the case. A trial is scheduled for Nov. 18.
Mr. Martoma is a central figure in the government’s investigation into insider trading at SAC. Last month, Preet Bharara, the United States attorney in Manhattan, brought criminal charges against the giant hedge fund, a rare prosecution of a corporate entity. A week earlier, the Securities and Exchange Commission filed a civil action against Steven A. Cohen, the owner of SAC, accusing him of failing to reasonably supervise his employees, including Mr. Martoma.
Ten former SAC employees have either been charged with or implicated in illegal trading while at the fund; of those, five have admitted guilt.
An SAC spokesman has said that the fund has never “encouraged, promoted or tolerated insider trading.â€
Mr. Martoma’s case dates back to 2006, when he met Dr. Gilman through the Gerson Lehrman Group, a so-called expert network firm that connects Wall Street money managers with industry specialists. Dr. Gilman was helping oversee clinical trials for a new Alzheimer’s drug being jointly developed by Elan and Wyeth.
The government said that Dr. Gilman provided Mr. Martoma with the trial results, violating his duty to the drug companies and breaching his agreement with Gerson Lehrman not to divulge confidential information. Dr. Gilman had roughly 42 consultations with Mr. Martoma, earning $108,000 from his work for SAC, the government said.
In Thursday’s updated indictment, the government said that an unnamed financial services firm linked Mr. Martoma with another doctor who was involved in the Elan and Wyeth drug trials.
The updated charges mesh with the accusations contained in the S.E.C. lawsuit brought against Mr. Cohen last month. In that civil complaint, securities regulators said that Mr. Cohen knew of a second doctor who might have had secret information about the clinical trials.
Rather than raise concerns about the fund’s possible possession of confidential information, Mr. Cohen encouraged Mr. Martoma to talk further with the doctor, the government said.
