Raj Rajaratnam didn’t, nor did Rajat Gupta, nor did any of the other seven defendants to stand trial during the government’s ongoing crackdown on insider trading testify in their own defense. Whitman Capital founder Doug Whitman, accused of earning about $1 million by trading on privileged information, did, testifying to his innocence over the course of two days last week. Not that it helped him. After less than a day of deliberation, a jury found Mr. Whitman guilty.
Mr. Whitman was charged with making illegal trades on technology companies such as Polycom and Google, and faces up to 25 years in prison at a sentencing hearing scheduled for Dec. 20. His conviction, which comes three days after baseball hall-of-famer Eddie Murray agreed to pay more than $350,000 to settle charges that Mr. Murray traded on an illegal stock tip provided by former teammate Doug DeCinces, brings the total defendants to plead guilty or be convicted of insider trading since 2009 to close to 70.
“Mr. Whitman had a hedge fund with his name on the door, with rules against insider trading,” said U.S. attorney Preet Bharara in a statement. “He flouted those rules, tarnished his name and now is a convicted felon facing imprisonment.”