Analyst Tells Jury He Tipped Whitman For Soft Dollars

Aug 2 2012 | 11:45am ET

The government wasted no time in getting one of its star witnesses on the stand at the insider-trading trial of hedge fund manager Doug Whitman.

Karl Motey told jurors that he passed confidential information about Marvell Technology Group to the Whitman Capital Management founder during the first day of testimony in the trial. The cooperating witness, who has pleaded guilty, said that Whitman paid him $12,500 in soft-dollars for the information.

In his opening statement on Tuesday, Whitman's lawyer indicated that he planned to attack the credibility of Motey and two other cooperating witnesses who will testify against his client, calling them "liars." Motey acknowledged yesterday that he was testifying in the hope of winning a reduced sentence.

Motey said he met Whitman in the 1990s and began to work for him as a consultant in 2006. From 2007 through 2009, when he was approached by authorities and asked to cooperate in the investigation, he garnered confidential tips about Marvell, an interest he shared with Whitman, from two sources, neither of whom has been charged. Motey, who read from notebooks he kept in both English and Farsi, said he then passed the tips to Whitman.

"I would tell him that the information came from a particular contact at Marvell," Motey told the jury. "He would thank me and tell me the information was useful to him."

According to prosecutors, that information and other insider secrets he got from other sources earned Whitman a profit of nearly $1 million.

The trial resumed this morning.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note