Thursday, 27 November 2014
Last updated 19 hours 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."
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...