Insider trading language gets workout at NY trial

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Associated Press

Posted on August 19, 2012 at 10:30 AM

Updated Sunday, Aug 19 at 11:01 AM

NEW YORK (AP) — A jury will resume deliberations Monday at a New York trial where the definition of insider trading on Wall Street has come under scrutiny.

San Francisco hedge fund founder Doug Whitman testified last week at his Manhattan federal trial. He says he doesn't believe it's illegal to get information from employees of public companies about company prospects as long as they don't provide specific numbers.

Prosecutors suggest his definition of inside information conflicts with his own hedge fund's policy on the issue.

His confrontation with a prosecutor on the subject of what constitutes illegal trades came as he defends himself against inside information charges. The government says he made nearly $1 million from 2006 through 2008 through tips from a neighbor in Atherton, Calif.

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