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.

Related

Sections

Case Information

Case Title

USA v. Whitman


Case Number

1:12-cr-00125

Court

New York Southern

Nature of Suit

Date Filed

February 8, 2012

Law Firms

Companies

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.