MANHATTAN (CN) – A hedge fund manager was indicted Friday for earning $900,000 by allegedly using inside information to trade on Google and other companies.
Doug Whitman, 54, of Atherton, Calif., has been charged with two counts of conspiracy to commit securities fraud and two counts of securities fraud.
He allegedly made $900,000 in illegal profits as head portfolio manager for Whitman Capital by trading on Marvell Technology Group, Polycom and Google.
Karl Motey, an independent research consultant, shared confidential information about Marvell with Whitman between 2007 through about 2009, according to the indictment.
“In exchange for the Inside Information, Whitman paid Motey through a soft dollar payment arrangement between Whitman Capital and Motey’s consulting firm,” prosecutors said in a press release.
Roomy Khan, a hedge fund industry insider, gave Whitman inside information about Polycom Google between 2006 and 2007, according to the indictment.
Whitman could face 50 years in prison and at least $5 million in fines if convicted of all the charges against him.
Motey and Khan previously pleaded guilty to insider-trading charges and are awaiting sentencing.