By Ben Protess & Peter Lattman
A California hedge fund manager surrendered to the Federal Bureau of Investigation in Lower Manhattan on Friday morning, the latest person ensnared in the government’s aggressive crackdown on insider trading.
Doug Whitman, lead portfolio manager of Whitman Capital in Menlo Park, Calif., is accused of placing illegal bets on technology stocks. Federal prosecutors said that Mr. Whitman used confidential information to trade in the shares of Marvell Technology, Polycom and Google, netting $900,000 in illegal profits.
The Securities and Exchange Commission filed a parallel civil case on Friday, as well.
“Trading on inside information, whether it comes directly from industry insiders or is channeled through conduits, is illegal,” Janice K. Fedarcyk, the head of the Federal Bureau of Investigation’s New York office, said in a statement.
Through his attorney, Mr. Whitman denied the allegations. “Mr. Whitman traded on the basis of lawful research and analysis, not unlawfully obtained inside information,” David L. Anderson of Sidley Austin, said in a statement. “Mr. Whitman did not pay any insiders or provide any personal benefit to any insiders for inside information.