Judge Nixes Change Of Venue For Accused Calif. Hedge Fund Manager

Mar 1 2012 | 3:55am ET

Hedge fund manager Doug Whitman will have to suffer an unwanted vacation in New York City this summer, a judge has ruled.

U.S. District Judge Jed Rakoff rejected a request by the Whitman Capital founder's lawyers to move his trial on insider-trading charges from the Big Apple to California, where Whitman lives and where most of the companies whose stock he is alleged to have traded illegally are based.

Whitman's lawyers had argued that, "at its heart, this is a Silicon Valley case and not a Wall Street case," and that most of the witnesses live in California. But Rakoff brushed them aside, noting that it was really as much a "cyberspace" case as anything. And, the judge added, the trial, set to begin on July 30, would only last about two weeks.

According to prosecutors, Whitman earned more than $900,000 participating in two insider-trading schemes. One allegedly involved Roomy Khan, the former Intel Corp. employee who helped bring down Galleon Group founder Raj Rajaratnam and a former neighbor of Whitman's in Atherton, Calif., and the other expert-network consultant Karl Motey.

If convicted of securities fraud and conspiracy, Whitman faces up to 50 years in prison.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.