Khan Says She Passed Google, Polycom Tips To Whitman

Aug 8 2012 | 12:03pm ET

A star witness against hedge fund manager Doug Whitman told the jury yesterday that the hedge fund manager was no passive recipient of insider information.

"He used to be always hounding me," Roomy Khan testified. She said he "aggressively" pushed her to get tips from what he called her "moles," and at one point asked her, "What value do you have if you're not a slimeball?"

Khan, a former Intel Corp. analyst and Galleon Group employee who has pleaded guilty to insider-trading twice,

Khan testified that she passed tips about Polycom Inc. and Google Inc. to Whitman, a neighbor of hers in Atherton, Calif. Khan said Whitman called her "Miss Google."

She also said that Khan was discerning about the information he would use. Passed tips from former Moody's Investors Service analyst Deep Shah, Whitman allegedly told Khan, "I don't want to have anything to do with him. I don't want to go to jail."

Shah is the only fugitive in the Galleon case; the SEC believes that he is in his native India.

Prosecutors also used Khan's time on the stand to play a taped conversation between her and the defendant in which Whitman says that Marvell Technology Group "had leaks on information like a sieve," but had "worked to cut off information." Nevertheless, Whitman said, "I still get some reasonable information."

The prosecution's first witness, Karl Motey, testified last week that he sold information about Marvell to Whitman.

The last 45 minutes of yesterday's session saw Khan, who did not testify in the trial of Galleon founder Raj Rajaratnam, face cross-examination for the first time. She admitted she forged a document to defend herself against a lawsuit filed by her housekeeper three years ago, admitting that they were "all lies."

Khan said her tips to Rajaratnam about Intel during her time at the company were an effort to land a job. "I don't think I was looking at the morality."

Khan managed to elicit a laugh from the jury about her checkered past when Whitman's lawyer, Dave Anderson, asked her how she got caught.

"When?" she asked.

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