A California-based hedge fund manager surrendered to FBI agents on insider-trading charges on Friday, the latest in a series of cases brought by the US government in recent years against money managers and traders. An FBI spokesman said an indictment would be unsealed later on Friday in federal court in New York outlining the charges against Doug Whitman, the founder of Whitman Capital in Menlo Park, California.
The hedge fund''s website describes it as a private partnership focused on the technology industry. Whitman denies that he traded on the basis of unlawfully obtained inside information, his lawyer said in a statement. The lawyer, David Anderson of Sidley Austin LLP, said Whitman had co-operated with the government''s investigation.
"Mr Whitman did not pay any insiders or provide any personal benefit to any insiders for inside information," the statement said. Anderson said the charges were based on information provided to investigators by two traders, Roomy Khan and Karl Motey, who have pleaded guilty to insider trading and conspiracy charges.