Wednesday, 30 July 2014
Last updated 14 hours ago
Aug 20 2012 | 11:11am ET
Jurors will continue to consider hedge fund manager Doug Whitman's fate after a weekend over which they could have mulled lawyers' final words to them.
The jury received the case on Friday, after both sides presented their closing arguments. They deliberated for only about an hour last week.
Whitman is accused of earning nearly $1 million for his Whitman Capital trading technology stocks on insider tips received from several sources. Three of the alleged sources testified against him, and Whitman himself took the stand—the first person to do so in his own defense during the recent insider-trading crackdown, which has ensnared more than 70 people—to tell the jury that his trades were based on innocent, and legal, research.
Not so, prosecutor Jillian Berman argued on Friday.
"Mr. Whitman absolutely knew what was allowed and what was not allowed, despite the story the spun up there on the witness stand," she told the jury.
Whitman's lawyer, David Anderson, used his summation to continue to attack the government's three cooperating witnesses, all of whom have pleaded guilty. In particular, he took aim at Roomy Khan, Whitman's former neighbor in Atherton, Calif., and a former employee of Intel Corp. and Galleon Group.
"The fact that Roomy Khan says something doesn't mean a thing," Anderson said. "Roomy Khan has lost her relationship with the truth so long ago."
If convicted of conspiracy and securities fraud, Whitman faces decades in prison. If he is acquitted, he'll be the first person nabbed in the recent crackdown to be freed by a jury; all of the other defendants have been convicted or have pleaded guilty.
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…