A federal jury in Manhattan recently found Doug Whitman, a California portfolio manager at Whitman Capital, LLC, guilty in his involvement in two insider trading schemes that earned his firm more than $900,000 in illegal profits. He was convicted on all four counts against him. Federal officials alleged that Whitman executed trades based on material, non-public information related to three publicly-traded companies – Marvell Technology Group, Ltd., Polycom, Inc. and Google, Inc. U.S. Attorney Preet Bharara had this to say:
Douglas Whitman now joins the grim procession of convicted Wall Street professionals who decided that the rules don’t apply to them. The rules do apply. Over and over again, juries of good, common-sense citizens have said the rules do apply, and they have held defendants like Mr. Whitman accountable for breaking them. Mr. Whitman had a hedge fund with his name on the door, with rules against insider trading. He flouted those rules, tarnished his name and now is a convicted felon facing imprisonment. I want to thank both the jury for their service and the fine career prosecutors from my office who so ably tried this case for their hard work and dedication.
Insider trading is against the law and those who knowingly violate that law must be dealt with harshly. Sentencing for Whitman is scheduled on December 20, 2012.
Source: The Corporate Crime Reporter
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