Calif. fund founder gets 2 years in prison in NYC

AP News
Posted: Jan 24, 2013 6:43 PM

NEW YORK (AP) — A San Francisco hedge fund founder has been sentenced in New York to two years in prison for his conviction on insider trading charges.

Doug Whitman was sentenced Thursday by U.S. District Judge Jed Rakoff. The judge also fined the founder of Whitman Capital $250,000 and ordered him to forfeit $935,000. Whitman was convicted of securities fraud and conspiracy by a jury in August.

Prosecutors say he made nearly $1 million between 2006 and 2009 by receiving inside tips about the earnings of public companies. Whitman had testified that he was careful to avoid inside trades.

At sentencing, Whitman said he was "terribly, terribly sorry."

The sentence was below the four to five years that federal sentencing guidelines recommended Whitman serve. He reports to prison May 9.