[ by Howard Haykin ] Whitman Tied to the Galleon/Rajaratnam Insider Ring. Judge Jed Rakoff's Daughter, In Jurors Pool, Not Picked. Doug Whitman, founder of Whitman Capital LLC, made almost $1 million for his hedge fund by trading on inside tips about Google, Polycom, and Marvell Technology, according to the opening statement of the U.S. prosecutor: "The defendant and his partners in crime decided the rules of stock trading did not apply." U.S. Attorney Christopher LaVigne, who lead the prosecution's case, told jurors they'll hear testimony from 3 of Whitman’s sources of illicit information, all of whom have pleaded guilty and are cooperating with the government.  Mr. LaVigne gave their names and background information, as follows:

• Karl Motey, an independent consultant hired by Whitman, passed him inside information from 2 Marvell employees.
• Roomy Khan, a former Intel executive who was Whitman’s neighbor in Atherton, CA, passed Whitman tips from Google and Polycom.
• Wesley Wang, a Whitman friend and consultant, admitted passing tips about Cisco Systems, Polycom, and Marvell.

LaVigne further told jurors that Whitman sent flowers to Khan after making money on her tip on Google earnings. Whitman Denies Charges Against Him. David Anderson, a lawyer for Whitman, said in his opening statement on Tuesday that his client made money from trading on legitimate information about technology companies, by trying to determine whether the information company officials give their investors is true.  Mr. Anderson urged jurors not to believe Motey, Khan, and Wang, whom he called "criminals and liars", testifying against Whitman in hopes of avoiding prison.

• Khan has twice pleaded guilty to charges she passed inside information to Galleon Group co-founder Raj Rajaratnam - in 2001 and in 2009.  After her October 2009 arrest, Khan has cooperated with the government, in part by helping them obtain wiretap warrants.
• Rajaratnam, who was convicted of 14 criminal counts in May 2011, is serving an 11-year sentence in a Massachusetts prison. He’s appealing his conviction.

"Khan has never been held to account for her crimes," Anderson told the jury.  "She has never been held to account for her lies.  She’s hoping you convict Mr. Whitman so she can remain free." Jury Pool. The panel of 12 jurors and 3 alternates, including 5 teachers, was selected on Tuesday.  U.S. District Judge Jed Rakoff is overseeing the trial in Manhattan federal court.  He expressed particular disappointment that one member of the jurors pool was not selected – his youngest daughter.  He said, "It would be the first time ever that she followed the court’s instructions." The case: U.S. v. Whitman, 12-cr-00125, U.S. District Court, Southern District of New York (Manhattan). For further details, go to:  [Bloomberg, 8/1/12].