Bloomberg, December 23, 2010
Karl Motey, an independent consultant in California, pleaded guilty and agreed to cooperate with federal prosecutors in a widening U.S. investigation of insider trading on Wall Street.
Motey pleaded guilty in federal court in Manhattan on Dec. 14 to conspiracy and securities fraud, according to court papers made public today. He got secret tips from multiple sources at Marvell Technology Group Ltd. and provided the information to hedge fund clients, according to the charging document.
Motey agreed to tell prosecutors about an insider trading scheme that ran from 2007 to March 2009, court papers show. He will also disclose details of tips that he got from a source at Taiwan-based United Microelectronics Corp. and from “employees of a hedge fund located in California,” according to court records.
An accomplice who isn’t identified “provided inside information to Karl Motey” about “Marvell and Marvell’s customers,” according to the criminal information.
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