First they came for Don Ching Trang Chu. Then federal prosecutors arrested a man who sold Apple secrets to traders. And now, according to court documents, Karl Motey, an independent technology consultant in California, has pleaded guilty to conspiracy and securities fraud and agreed to cooperate with the feds as part of the sweeping, nation-wide investigation of insider trading on Wall Street.
So far, Motey has positioned himself as the anti-John Kinnucan: Quick to snitch. He’s already fessed up to receiving secret tips from multiple sources at Marvell Technology Group Ltd., a company that makes processors for smartphones, and to providing that information to hedge fund clients. He has also agreed to disclose details of similar tips that he got from a source at Taiwan-based United Microelectronics Corp. Plus, he made more than sixty tapped phone calls to insider-trading suspects on behalf of the feds, after his arrest. Which goes to show: If you’re a crooked insider-trader, you just can’t trust anyone.
Karl Motey: The Confirmed Secret Weapon Against Insider Trading [Deal Journal/WSJ]
Consultant Motey to Plead Guilty, Detail Marvell Tips in U.S. Insider Case [Bloomberg]
Tech analyst latest to plead guilty in insider case [Reuters]