Wednesday, 30 July 2014
Last updated 9 hours ago
Aug 10 2012 | 3:02pm ET
The third star witness against accused insider-trader Doug Whitman—the one closest to him—took the stand against his former boss and friend yesterday.
Wesley Wang, a former SAC Capital Advisors consultant who pleaded guilty to insider-trading last month, testified that he traded tips about technology companies to the Whitman Capital founder. Wang served as an intern at the California hedge fund until 2002, before going on to Trellus Management and SAC's Sigma Capital.
Wang said the two men shared tips about Cisco Systems, Marvell Technology Group and Polycom Inc. His testimony follows that of Karl Motey and former Galleon Group employee Roomy Khan, both of whom also testified that they passed non-public information to Whitman.
Prosecutors allege that Whitman made nearly $1 million in illicit profits trading on such tips.
In addition to Wang's direct testimony, prosecutors used his time on the stand to play wiretapped phone calls, including one in which Whitman told Wang that "Roomy had a mole [at Google Inc.] for a while."
"And?" Wang asked.
"Uh, she lost the mole," Whitman explained. "The woman wanted her to take care of her for, uh, giving her the information."
The two also discussed Khan's housekeeper's lawsuit against her.
"She doesn't pay her maid. How's she going to pay the contacts?" Wang joked. "That's hilarious."
Wang could also be more serious, however. He instant messaged Whitman after allegedly offering him information about Cisco: "Please stay quiet about it. I'm getting paranoid. OK? Just do what you need to do but don't tell anyone."
In addition to Whitman, Wang has admitted that he traded tips with Dipak Patel, another former SAC employee, and Thomas Hardin, a former analyst at Lanexa Global Management who is a cooperating witness in the Galleon case.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…