Former SAC manager resolute as trial poised to start When prosecutors open their trial this week against Mathew Martoma, a former SAC C apital portfolio manager accused of insider trading, the elephant in the courtroom will be Steven Cohen. Mr Cohen, founder of SAC, has not been accused of insider trading, but he stands between Mr Martoma and the hedge fund's sale of $700m of two drug company stocks following a 20-minute phone conversation the two men had in July 2008. The sale and subsequent bets that shares of Elan and Wyeth would drop allegedly resulted in the largest single insider trading offence in US history, making SAC $276m in profits and avoided losses. It is the 11th insider trading trial under Preet Bharara, the US attorney for Manhattan since 2009. His prosecutors have not lost an insider trading case, earning 77 convictions. Despite months of pressure from authorities and the possibility of a decade in prison if convicted, Mr Martoma has maintained his innocence and has refused to co-operate in the investigation into Mr Cohen's trading. "Mathew continues to fight the charges and is preparing for trial," his lawyer Richard Strassberg said. The prosecution's case is based heavily on the testimony of two doctors - Dr Sidney Gilman and Dr Joel Ross - who were hired by Elan to consult on a clinical drug trial the company ran jointly with Wyeth for an experimental Alzheimer drug known as bapineuzumab. Both doctors have signed deals with prosecutors in which they will avoid criminal charges in exchange for their testimony against Mr Martoma. After learning that the drug trial was disappointing on Thursday July 17 2008, Dr Gilman is expected to testify that he called Mr Martoma and relayed the results during a nearly two-hour conversation. The two met in person two days later, prosecutors allege. The next morning, Sunday July 20, Mr Martoma and Mr Cohen spoke for 20 minutes. When the markets opened the next day, SAC began unwinding its $700m position and bet that the drug company stocks would drop. When the trial results were announced on July 29 both stocks dropped, earning SAC $276m in profits and avoided losses. Mr Strassberg, Mr Martoma's lawyer, plans to argue that Mr Cohen sold for other reasons, according to court filings. He is seeking permission from the judge to cite Mr Cohen's testimony before securities regulators when he said he did not recall what Mr Martoma told him during the 20-minute phone call other than he was "getting uncomfortable" with the position. Mr Cohen also testified that he bought and sold Wyeth shares on the recommendations of Mr Martoma and Wayne Holman, a close friend and former SAC portfolio manager who specialised in healthcare stocks, according to court filings. Mr Holman, who is not accused of any wrongdoing, was not immediately available for comment. Prosecutors have opposed the motion.