Wednesday, 20 August 2014
Last updated 49 min ago
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."
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note