Whitman Capital case brings insider trading under new focus

The Whitman Capital executive has been charged with insider trading and sentenced to two years in prison.

Doug Whitman, founder of Whitman Capital LLC -- a hedge fund -- has been sentenced to two years in prison, according to Bloomberg, for trading on illicit tips about Polycom, Google, and Marvell Technology Group. He said he received the information from Roomy Khan, former Intel executive. The transactions conducted produced $935,000 for Whitman on the trades based on her tips, and those of a Whitman-hired consultant named Karl Motey,. 

The Whitman Capital LLC hedge fun appealed to the U.S. Court of Appeals in New York to seek a ruling that that judge had improperly instructed the jury on how to consider the issue of willful blindness at his insider trading trial, but the court rejected the argument. 

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Juliana Kenny

Juliana Kenny is a contributor to InsideCounsel.com, covering a range of topics including patent litigation, conflict mineral laws, executive compensation, and antitrust regulation. Juliana earned B.A.s...

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