Insider Trading Witness Says Analysts Often Chat Up Insiders

Law360, New York (August 2, 2012, 9:39 PM EDT) -- Technology analysts regularly speak with company insiders to probe for information, a government witness in the trial of accused inside trader Doug Whitman admitted Thursday, as the defense tried to undercut the theory that Whitman's own digging crossed the line.

Government witness Karl Motey said under cross-examination that he engaged in "channel checking," a practice through which analysts contact lower-level corporate employees to check up on a company's performance.

Motey is a former analyst who consulted for Whitman's California-based hedge fund Whitman Capital LLC, which allegedly...
To view the full article, register now.