The SEC issued a follow-up report to the FBI's report on Friday morning, regarding insider trading charges against a California hedge fund manager.  The SEC provides significantly more information than this morning's FBI report, including an apparent link between the California fund manager and participants in the Raj Rajaratnam hedge fund trading ring - most, if not all of whom, pleaded guilty or were convicted by in a jury case. SEC Findings and Allegations. Douglas Whitman and Whitman Capital are alleged to have illegally traded based on material nonpublic information obtained from Raj Rajaratnam associate Roomy Khan, who was Whitman's friend and neighbor.  Khan is said to have tipped Whitman with confidential details about Polycom Inc.'s Q4 2005 earnings and Google Inc.'s Q2 2007 earnings prior to being announced by the respective companies.  All told, Whitman Capital made nearly $1 million in illicit gains by trading on Khan's illegal tips. References to the Polycom and Google inside information that the SEC made in its complaint, filed Friday in federal court in Manhattan, are based on the same information that the SEC previously alleged Khan had provided to many of her other hedge fund contacts - including Galleon's Rajaratnam, as well as Robert Feinblatt and Jeffrey Yokuty at Trivium Capital. Khan allegedly tipped Whitman in January 2006 about Polycom's quarterly financial results, which she noted at the time was nonpublic and had been acquired from a source at Polycom.  Whitman Capital bought over 132,000 Polycom shares over the next two weeks. After the company announced its results on 1/25/06, Whitman Capital liquidated its entire Polycom position for a profit of more than $360,000.  On at least one later occasion, in September 2008, Whitman asked Khan to contact her Polycom source to obtain inside information about the company's upcoming earnings so the two could "short it." When Khan rebuffed Whitman citing a fear of getting caught, Whitman suggested that she use "Skype" to avoid detection. Whitman later stated that he would stop speaking to Khan if she wasn't going to be a "slimeball" anymore. Khan also is alleged to have illegally tipped Whitman with inside information about Google's quarterly financial results shortly before the company announcement on 7/19/07.  At Whitman's insistence, Khan identified her Google source as an employee of Google's outisde investor relations firm.  Whitman Capital then purchased 2,761 Google put options, which he closed out on 7/20 for ill-gotten profits of more than $620,000. Whitman expressed his appreciation by sending Khan a large floral arrangement. The SEC seeks a final judgment permanently enjoining the defendants from future violations of application federal securities laws, disgorgement of their ill-gotten gains plus prejudgment interest, and financial penalties. The SEC now has charged 30 defendants in its Galleon-related enforcement actions, which have exposed widespread and repeated insider trading at numerous hedge funds and by other traders, investment professionals, and corporate insiders located throughout the country. The insider trading occurred in the securities of more than 15 companies, which generated more than $91 million in illicit profits. SEC New York Staff Credits. The investigation, which continues, is conducted by:  John Henderson, Joseph Sansone (both in SEC Market Abuse Unit);  Diego Brucculeri, James D'Avino (NYRO).  Kevin McGrath, Valerie Szczepanik will lead litigation.  The worked with the FBI on this investigation. For further details:  [SEC PR 12-27, 2/10/12] and  [SEC Complaint].