Friday, 19 September 2014
Last updated 1 hour 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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