Hedge-Fund Manager Allegedly Attained $900,000 Through Inside Tips

Roomy Khan pictured above

          Doug Whitman, North Californian hedge-fund manager, allegedly attained $900,000 for his company through insider tips on technology firms. Whitman, 54, is said to have traded confidential information on publicly traded companies as well as payed for tips, specifically tips from Karl Motey and neighbor and business associate Roomy Khan between 2006-2007 on companies such as Polycon Inc. and Google. Both, Motey and Khan have pleaded guilty to their own instances of insider-trading and are currently working with authorities to testify against others of similar crimes. Whitman’s case is one that stems from a larger insider-trading case against Raj Rajaratnam, founder Galleon Group. Whitman has pleaded not guilty and was released on a $1.5 million bond. Whitman’s lawyer holds that he traded using only lawful research and information.

SOURCE: The Wall Street Journal