Whitman Insider-Trading Trial Begins

Jul 30 2012 | 1:24pm ET

The latest hedge fund insider-trading trial gets underway today in New York, with Whitman Capital's Doug Whitman set to face a jury.

Whitman, one of 66 people charged in a series of government insider-trading probes, is charged with earning nearly $1 million in two insider-trading schemes. In one, Whitman allegedly traded confidential information with Roomy Khan, a former Intel Corp. employee and neighbor in Atherton, Calif., who cooperated in the Galleon Group case. He also allegedly paid Karl Motey, another cooperating witness, this time in the Primary Global Research expert-network case, for other information.

Both Khan and Motey could testify against Whitman, as could the latest person to plead guilty in the crackdown, former SAC Capital Advisors consultant Wesley Wang, who admitted earlier this month to passing confidential information to Whitman.

Whitman faces two counts of conspiracy and two counts of securities fraud, and could be sent to prison for 50 years if convicted. He denies any wrongdoing.

"There is no allegation that Mr. Whitman provided payoffs or any other benefits to any insiders for inside information," his lawyer told Bloomberg News. "He's been following these companies for as long as they have existed as a well-regarded research analyst in Silicon Valley."


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 
Error

FINalternatives Trending

From the current issue of