California Hedge Fund Founder Denied Re-Trial

InsiderTradingNew York (HedgeCo.Net) – San Francisco hedge fund founder Doug Whitman has been denied a new trial on his insider trading case which earned him two years in jail, the WSJ reports. Whitman was sentenced in January 2013 after a conviction on securities fraud and conspiracy charges.

Whitman Capital, the hedge fund he had presided over had about $100 million in assets. Prosecutors said Whitman made nearly $1 million between 2006 and 2009 by receiving inside tips about the earnings of public companies.

The judge accused him of being, “cavalier and crude in his business dealings.” Whitman was also fined $250,000 and ordered to forfeit $935,000.

Whitman was convicted on all four counts with which he was charged. He was found guilty of executing trades based on non-public information related to three publicly traded companies: Marvell Technology Group, Polycom and Google.

Alex Akesson
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