Thursday, 27 April 2017
Last updated 19 min ago
Aug 3 2012 | 10:56am ET
The lawyer for accused insider-trader Doug Whitman took aim at the first of the government's star witnesses yesterday—and won some concessions from him.
Karl Motey had testified on Wednesday that he acquired confidential information about Marvell Technology Group from two sources and that he passed those tips on to Whitman, who ran hedge fund Whitman Capital. But Whitman's lawyer, David Rody, sought to poke holes in that story.
Under cross examination, Motey testified that he told Whitman that "Marvell was leaky." If the information Motey allegedly sold Whitman was widely disclosed, it would not qualify as non-public.
Motey also acknowledged that some of the information he gave Whitman was wrong, and Rody showed Motey research reports the latter had written before he claims to have begun passing tips to Whitman.
Rody also told U.S. District Judge Jed Rakoff that they plan to show that Whitman's use of "source" or "mole" for Motey's contacts at Marvell, who have not been charged with any wrongdoing, do not mean that Whitman knew the information they provided was secret.