“The veil has lifted a bit more on the four men arrested and charged last week in the government’s crackdown on insider trading. Karl Motey, a former semiconductor analyst for Wachovia and other Wall Street firms, was identified by Deal Journal colleague Susan Pulliam as one of the government’s formerly anonymous crucial helpers,” Shira Ovide reports for The Wall Street Journal.
“Pulliam reported Motley–-previously identified only as ‘cooperating witness 2’in a court filing–made more than 60 phone calls to help the government in its widening investigation,” Ovide reports. “The legal complaint last week showed how much the feds relied on Motey to nab expert-network official James Fleishman, and to elicit recorded secrets about Marvell, Apple and AMD, among other technology companies.”
Ovide reports, “Motey now runs a research firm called Coda Group, a small California firm that offers research services about technology companies. As an analyst at Wachovia and other firms, Motey covered the semiconductor industry, including Conexant, Broadcom, Vitesse Seminconductor and Marvell–one of the companies for which he arranged sting phone conversations as part of the insider-trading case.”
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Adam Satariano reports for Bloomberg, “Walter Shimoon was one of a select few who get a peek behind the veil Apple Inc. cinches tightly around its products.”
“His alleged attempt to profit illegally from that privilege caught up with Shimoon last week, when the former manager at Apple supplier Flextronics International Ltd. was among three people arrested for supplying inside information to investors,” Satariano reports. “Shimoon, 39, was paid more than $22,000 to share non-public sales forecasts and other information about future products, including the iPad, according to the criminal complaint.”
Satariano reports, “His arrest underscores the difficulty faced by Apple Chief Executive Officer Steve Jobs, who runs the world’s most valuable technology company, in keeping multibillion-dollar products under wraps, said Charlie Wolf, an analyst at Needham & Co.”
Full article here.