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.

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    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…