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Posted on Tue, Nov 27, 2012 : 4:02 p.m.

Read Ora Pescovitz's email to U-M Health System employees regarding insider trading scheme

By Amy Biolchini

After news broke Nov. 18 of a University of Michigan medical professor's alleged involvement with a multimillion dollar insider trading scheme, Dr. Ora Pescovitz, executive vice president for medical affairs at U-M, sent an email to her entire staff at the health system Saturday afternoon in response.

Dr. Sidney Gilman, 80, a neurology professor at U-M, is accused of leaking nonpublic information regarding the outcome of a drug trial to a former portfolio adviser at CR Intrinsic Investors LLC that led to a massive trade of pharmaceutical company shares.

Though Pescovitz did not name Gilman in the email, Pete Barkey, director of public relations for UMHS, confirmed Sunday that Pescovitz was referring to Gilman.

Following is the full text of the email:

pescovitz.JPG.jpeg

Dr. Ora Pescovitz

Courtesy U-M

"Earlier this week, one of our faculty members was implicated in an insider trading scandal. The matter involves the alleged disclosure of confidential information in violation of various federal securities laws. The investigation and legal process is ongoing.

However, this is an opportune time for all of us in the Health System to reaffirm our commitment to follow the highest standards of integrity in the conduct of research and in the delivery of patient care - standards that are governed by the National Institutes of Health, The Joint Commission and American Medical Association but grounded in our own values of what is right.

In our teaching, patient care and research roles, we are entrusted with confidential information of many types, and we work hard to never betray that trust. We are proud of our rich legacy and disappointed when we fail.

This unfortunate occurrence has triggered much media attention. Should you receive a call for information or comment from the media, please call Public Relations at 734-764-2220 for handling.

Ora H. Pescovitz, M.D.
Executive Vice President for Medical Affairs, U-M CEO, U-M Health System

Douglas L. Strong
CEO, University of Michigan Hospitals and Health Centers

James O. Woolliscroft, M.D.
Dean, Medical School
Lyle C. Roll Professor of Medicine"

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

Naiyiri

Wed, Nov 28, 2012 : 11:39 p.m.

"this is an opportune time for all of us in the Health System to reaffirm our commitment to follow the highest standards of integrity". What a Crock'o. Sounds like the same kind of BS that was sent around via global email, once again, after it was discovered that there was a 6-month delay in the reporting of a Pediatric resident in posession of child porn. You wonder whey there is no integrity at UM anymore? Monkey-see, monkey do!!!

BhavanaJagat

Wed, Nov 28, 2012 : 6:32 p.m.

What is Right? : Thanks for sharing this e-mail and letting your readers know the names of those people who have responded to this news story. The letter reveals the ideas, thoughts, and the reasoning process used by its authors. I read this story from a different context. If I am satisfied with what I have, I will not experience any craving/desire/urge to seize an opportunity to earn an additional income. All these rules, regulations, and policies utterly fail to formulate human behavior. Man is a creature of his emotions and he lives to find happiness in his living condition. There is no happiness until man is satiated and has discovered psychological satisfaction and mental contentment. We may erect any number of barriers, man will find a way to cross those boundaries. This struggle to reconcile human action and behavior with established social norms and laws will continue till the very end of life unless man has found true contentment.

Ron Granger

Wed, Nov 28, 2012 : 2:04 p.m.

That email is merely a spin-control effort by the University. They're trying to keep the story out of the media, and under wraps. That CYA mentality reminds me a lot of what lead to the cover-up of the child porn images.

Great Lakes Lady

Wed, Nov 28, 2012 : 1:23 p.m.

I agree with "Basic Bob".... this was all about directing any phone calls to Public Relations.... so that no one talks to the media.

Naiyiri

Wed, Nov 28, 2012 : 11:58 p.m.

It's not only the media that spins, A2miguy. PR people are in place to do exactly what Great Lakes lady typed. That's what PR is. If everyone liked the place you were trying to sell as much as you wanted them to, there would be no need for PR, would there? As you accuse the media of spinning the slightest, meaningless statement into something much more than it is, while PR spins the same in reverse.

a2miguy

Wed, Nov 28, 2012 : 4:47 p.m.

Not quite, GLL. It's so that the right people DO talk to the media when they come a-callin'. This is not because of hiding anything or shielding anyone from blame, but because unfortunately, the media has become a machine that will spin the slightest meaningless statement into something much more than it is. PR people are in place to keep this sort of thing from getting out of hand. Let this case play out in the court of law, not the court of public opinion. The truth will out, if we just let it.

Basic Bob

Wed, Nov 28, 2012 : 10:59 a.m.

Her concern seems to be over "media attention" rather than the "unfortunate" federal crime. Can we learn from our mistakes? Please?

Reason

Wed, Nov 28, 2012 : 10:50 a.m.

I agree this email is silly. All academic universities should have strict ethical criteria. You can go to www.propublica.org and see which doctors are taking money from drug companies. In some cases of research, they may have no choice because NIH dollars are limited but $1000 or $10,000 for "speaking fees" for a drug company? Come on.

treetowncartel

Wed, Nov 28, 2012 : 3:45 a.m.

Makes you wonder if there isn't a qui tam/false claims act lingering in the halls of the health system.

PineyWoodsGuy

Wed, Nov 28, 2012 : 3:19 a.m.

Dr Gilman is 80 years old, researching Alheimzers (degenerative brain disease that strikes the elderly). Cut the dude some slack . . . perhaps he thought he was advancing research by telling the hedge fund manager the UnivMich "cure" did not pass the FDA tests. Have yins thought of that possibility?

UtrespassM

Wed, Nov 28, 2012 : 2:02 a.m.

This unfortunate occurrence has triggered much media attention. = ??? Should you receive a call for information or comment from the media, please call Public Relations at 734-764-2220 for handling =???

Indymama

Thu, Nov 29, 2012 : 5:47 a.m.

These are fluffy words that sound good, but read them carefully and you will realize they say very little!!

Kai Petainen

Wed, Nov 28, 2012 : 2:34 a.m.

"standards that are governed by the National Institutes of Health, The Joint Commission and American Medical Association but grounded in our own values of what is right." ???

Kai Petainen

Tue, Nov 27, 2012 : 11:36 p.m.

I referenced the article http://tinyurl.com/dx57lfw "As Insider Trading Case Unfolds, University of Michigan Reaffirms Commitment to Integrity"

DennisP

Tue, Nov 27, 2012 : 11:32 p.m.

"...we work hard to never betray that trust." Looks like at least one person didn't work all that hard...

Always Amazed

Tue, Nov 27, 2012 : 9:54 p.m.

It would be my hope that Dr. Gilman would resign his position immediately and then let the government and University investigations take their course. He has it seems admitted guilt to the prosecutor in exchange for a non-prosecution agreement.

JRW

Wed, Nov 28, 2012 : 12:29 a.m.

I agree. By signing a non-prosecution agreement, he avoids jail time but admits guilt. He either needs to resign immediately or be fired.

xmo

Tue, Nov 27, 2012 : 9:50 p.m.

The first, Rich Rod had some ethic issues with practice time, then the law school had ethics problems, now the Medical School/Health System? What is the Michigan Way?

Michigan Man

Tue, Nov 27, 2012 : 9:48 p.m.

Weak, really, really weak. Why even bother sending that nonsense? Stand tall, speak with conviction and lead by example. This email by an administrative/medical staff leader contains no enthusiasm for ethical behavioral, protecting of patient rights and delivering high quality patient care. Meaningless words, is you ask me.

JRW

Wed, Nov 28, 2012 : 12:31 a.m.

Yup. You are correct. A MUCH stronger statement about integrity and ethics, not to mention criminal behavior related to securities laws, is needed.

Clarence Worley

Tue, Nov 27, 2012 : 9:36 p.m.

I'm curious to know if Ora thinks her $739,000.00 a year salary contributes to high cost of health care. http://www.umsalary.info/index.php?FName=ora&LName=pes&Year=0&Campus=0

cinnabar7071

Tue, Nov 27, 2012 : 9:25 p.m.

A little jail time would a louder messege then an email. I bet this happens again and the people at the U of M will still have that blank stare on their faces.