Key Galleon Informant Testifies Against Whitman

Aug 7 2012 | 2:56pm ET

Roomy Khan helped put Galleon Group founder Raj Rajaratnam away and now is trying to help prosecutors do the same to her former neighbor, accused insider-trader Doug Whitman.

Khan took the stand at the Whitman Capital Management founder’s trial yesterday, testifying for about 40 minutes towards the end of the day. It marked her first time on the witness stand in open court; prosecutors elected not to call her at the Rajaratnam trial, although her cooperation helped them win the wiretaps that played a crucial role in his conviction and 11-year sentence.

Khan, who has herself pleaded guilty to insider trading twice, told the New York jury that will decide Whitman’s fate that she passed confidential information about Google Inc. and Polycom Inc. to the hedge fund manager, who lived near her in Atherton, Calif.

“I had a set of people who I gave information to on a regular basis,” Khan said. She also told the jury of her past misdeeds, and her relationship with Rajaratnam.

Khan said she “wanted to please” Rajaratnam, who had offered her a job while she was “disenchanted” with her work as an analyst for Needham & Co. She later went on to Intel Corp.—but kept working for Rajaratnam, in a way, passing him tips about that company.

Khan’s testimony continued today and could go on for another, lawyers for both sides said. Whitman’s lawyers indicated in their opening statement that they would challenge Khan’s integrity, arguing that she is lying to save her own skin.

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