NY insider trading trial begins for California man

AP News
Posted: Jul 31, 2012 8:25 PM

NEW YORK (AP) — A Florida woman with long ties to a one-time billionaire hedge fund founder jailed on insider trading charges will testify at the New York trial of a San Francisco hedge fund operator.

Prosecutor Christopher LaVigne (luh-VEEN) told a jury in an opening statement Tuesday that Roomy Khan will testify at the trial of Doug Whitman. Whitman is accused of taking tips from Khan and others to make nearly $1 million illegally since 2007. His attorney told jurors that Whitman did not buy or sell any stock based on insider information.

Kahn, of Fort Lauderdale, Fla., met one-time billionaire Raj Rajaratnam (RAHJ rah-juh-RUHT'-nuhm) in the mid-1990s. She has pleaded guilty to related charges and is cooperating.

Rajaratnam is serving 11 years in prison. He was convicted at trial of insider trading.