Saturday, 20 December 2014
Last updated 1 day ago
Jan 30 2013 | 12:48pm ET
Whereas Roomy Khan can expect only equivocal support from prosecutors at her sentencing for insider-trading tomorrow, another key cooperating witness will get full-throated backing for leniency next week.
Karl Motey offered "extraordinary" assistance to the federal insider-trading crackdown, prosecutors wrote to the judge who will sentence him on Monday. Motey's lawyer asked that his client received just a year on probation in recognition of that cooperation.
According to Assistant U.S. Attorney Jillian Berman, Motey began cooperating soon after he was approached by the Federal Bureau of Investigation and recorded more than 400 phone calls and other conversations with more than 50 people. His assistance led to the prosecution of more than 20 people, and he testified against hedge fund manager Doug Whitman and expert-network sales executive James Fleischman, both of whom were convicted.
"Motey's assistance has been critical to the investigation and prosecution of dozens of individuals involved in insider trading, most significantly in the area of the government's investigation of the expert networking firm" Primary Global Research, where Fleischman worked, Berman wrote.
And Motey's cooperation continues, prosecutors said.
In addition to Motey, who pleaded guilty two years ago to fraud and conspiracy, two other cooperators will learn their fates in the next few days. Both Khan, whose "series of lies" prosecutors complained about in their sentencing memorandum, and former hedge fund analyst Jason Pflaum will be sentenced tomorrow.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.