The Untouchable’s insider dealing case involving some of world’s biggest technology outfits seems to be getting stronger thanks to the action of a super grass.
Karl Motey, of Coda Group in Los Altos, gathered evidence for prosecutors, including confidential information from sources at Marvell.
In the US District Court in New York Motey pleaded guilty to charges of conspiracy and securities fraud, days before prosecutors announced the arrests of four other people linked to so-called expert networking firms.
According to the charges, Motey, the tippees and others known and unknown executed trades in the securities of Marvell and other public companies for purposes of earning unlawful profits.
In exchange for providing inside information, Motey received cash through brokerage firms located in New York.. He was active from 2007 to March 2009.
The Untouchables have been investigating the case for three years, but managed to get some serious evidence in November 22 when they raided hedge fund offices in Boston; Stamford, Connecticut; and New York.
One of the four people arrested on December 16 was accused of leaking secrets about Apple iPad ahead of its launch. Those arrested included three technology company executives and a salesman for Primary Global Research, which had hired the three to work as consultants to fund managers on the tech industry.
A Dell employee, Daniel DeVore ,has already pleaded guilty in the case that spun off from the high-profile investigation of Galleon’s Raj Rajaratnam.
The prosecution have asked the Judge to delay DeVore’s sentencing to 2013 “owing to the large nature of this investigation” and his continuing cooperation. In short, this canary is singing like a bird and they want to make sure he continues.