Monday, 1 September 2014
Last updated 3 days ago
Sep 2 2011 | 10:04am ET
In the fourth insider-trading trial this year, federal prosecutors again went to the tapes yesterday, allowing jurors to hear former Primary Global Research sales executive James Fleishman's voice for the first time.
Prosecutors played a phone call taped by cooperating witness Karl Motey, their first witness against Fleishman, who is accused of arranging calls in which hedge funds and other Primary Global clients received confidential information.
In the phone call from May 2009, Fleishman told Motey, who had said he was considering launching a hedge fund, that Primary Global's expert consultants could provide information "to prove or disprove your model."
Asked by Motey, who heads a California research firm, if those consultants could get specific information, Fleishman said, "In Taiwan, who are seeing stuff on a day-to-day basis that can say, "Hey, here's how things are shaping up form June."
"I took it to mean that they had people who'd be able to give me daily updates on a particular company, even on a day-to-day basis," Motey, who has pleaded guilty in the case, testified.
Indeed, in a phone call with a Primary Global expert later that month, also played for the jury, Motey said he received Marvell Technology Group's revenue expectations and the average gross margin for one of its businesses.
"I was very surprised," Motey said. "That's not a public number for the company as far as I knew at the time."
Motey said that Primary Global did not provide last names or contact information for experts to clients "to protect them from investor relations."
"What I meant was in my experience, investor relations keeps a very tight control over who gets to talk and what message gets out," he testified. "Investor relations would not want employees to be talking to investors."
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...