Informants take center stage at U.S. insider trading trial
Source: Reuters
Informants take center stage at U.S. insider trading trial
Tue, 31 Jul 2012 22:57 GMT
Source: reuters // Reuters
By Grant McCool
NEW YORK, July 31 (Reuters) - U.S. prosecutors are relying heavily on three convicted informants, including a former associate of now-imprisoned Galleon Group founder Raj Rajaratnam, in the insider trading trial of a California hedge fund manager, a jury heard on Tuesday.
Whitman Capital founder Doug Whitman illegally used inside sources to get "a sneak peak" on the financial performance of Google Inc, Polycom Inc and Marvell Technology Group Ltd between 2006 and 2009, prosecutor Christopher LaVigne said in opening arguments on Tuesday in Manhattan federal court.
Whitman's lawyer, David Anderson of law firm Sidley Austin, told the jury in his opening statement that his client was a career research analyst and trader in technology company stocks who "did not pay or corrupt anyone for inside information."
The hedge fund manager is charged with securities fraud and conspiracy in making $900,000 illegally on inside information, the latest strand of the high-profile Galleon hedge fund prosecutions against dozens of money managers and traders over the past three years. All pleaded guilty or were convicted at trial.
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