On December 24, 2010, the Financial Times reported that a former Wall Street semiconductor analyst admitted to fraud. The former analyst is assisting in insider trading investigations against Primary Global Research, based in Mountain View, CA.
Karl Motey, the former analyst, pleaded guilty in a New York federal court to securities fraud on December 14, 2010. Even though some people suffered bankruptcy filings last Christmas eve, they should realize they were in a better place than Motey, who faced criminal charges.
Motey admitted to giving inside information on Marvell Technology Group to hedge funds. The insider trading probe goes to show that even when people are well educated with money, they still suffer problems by not living simply. Motey previously worked at Wachovia Securities. Motey got tips from an employee at Marvell, which he used to tip off hedge funds who were clients of his consulting business.
At the same time of Motey’s guilty plea, the government investigated Daniel DeVore, a former Dell global supply chain manager. DeVore pleaded guilty for tipping clients at Primary Global Research.
Insider trading hurts the everyday investor when people with the advantage of nonpublic information are able to trade to prevent losses or make more profits than the public without the information. This creates financial crisis for the masses, and perhaps lead some people into bankruptcy.
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Tags: Fraud, Fraud Sacramento
Posted February 23, 2011 by Imogen Lay under Credit Report