Whitman Capital LLC’s Doug Whitman used illegal tips from company “moles” to make trades on Polycom Inc., Google Inc. and Marvell Technology Group Ltd., a prosecutor told jurors at the end of the hedge-fund manager’s criminal trial.
“Mr. Whitman knew what was allowed and what was not allowed, despite the story they spun up there on the witness stand,” Assistant U.S. Attorney Jillian Berman said in her closing argument Friday in Manhattan federal court.
Whitman, 54, is the first defendant in the government’s crackdown on hedge-fund insider trading to testify at trial. Jurors heard testimony from three witnesses who pleaded guilty to passing illegal tips and agreed to cooperate with prosecutors.
Whitman is charged with two counts of conspiracy and two counts of securities fraud. The most serious charge carries a maximum 20-year prison sentence. U.S. District Judge Jed Rakoff, who is presiding over Whitman’s trial, said he expects jurors to begin deliberations Friday afternoon.
Whitman claims his trading was based on legitimate research, not illegal tips. His attorney delivered a closing argument after the prosecutor spoke.
The case is U.S. v. Whitman, 12-cr-00125, U.S. District Court, Southern District of New York (Manhattan).
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