Saturday, 10 October 2015
Last updated 19 hours ago
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.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…