Tuesday, 31 March 2015
Last updated 4 hours ago
Feb 5 2013 | 2:30am ET
Karl Motey's "extraordinary" cooperation helped prosecutors nail more than 20 insider-traders, and helped him avoid jailtime.
Motey, a former technology stock analyst, secretly recorded more than 400 conversations for the Federal Bureau of Investigation and "played a pivotal role" in the probe into expert-network Primary Global Research, prosecutors said. They weren't the only ones impressed: U.S. District Judge Jed Rakoff, who was on the bench during the two trials Motey testified in, called Motey "a particularly impressive cooperator" before sentencing him to time served—less than a day—and one year of supervised release. Motey was also ordered to forfeit $40,000.
"I think that he has shown that he has definitely learned his lesson," Rakoff said.
"The past four years have been the most shameful and difficult of my life," Motey said. "I sincerely apologize for my mistakes. I've learned a hard and important lesson that will stay with me all of my life."
Motey testified at the trials of former hedge fund manager Doug Whitman and former Primary Global executive James Fleishman. Both men were convicted. He began cooperating with authorities immediately after he was approached by the FBI four years ago and pleaded guilty to securities fraud and conspiracy in 2010.
Motey's sentencing yesterday followed those last week of two other cooperating witnesses, Roomy Khan and Jason Pflaum. Khan, who repeatedly lied to authorities during her cooperation, was sentenced to one year in prison, while Pflaum received only probation.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…