Whitman Tipster Admits Co. Was 'Leaky,' Some Info Was Wrong

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...