Motey, who’s a 46 year old tech analyst, is reportedly “Cooperating Witness 2” (CW-2) in the complaint against the four men who were arrested last week in connection to the insider trading investigation.
He was a client of Primary Global Research – the expert network that’s at the center of the scandal – in May last year. His was in contact with James Fleishman, one of the men arrested.
The FBI’s complaint shows that CW-2 — aka Motey — has already plead guilty to securities-fraud charges, but doesn’t detail when or why those charges were filed. Neither Motey or the FBI confirmed his role.
Motey heads an independent research firm in California called Coda Group, which reportedly provided detailed reports about tech companies to a few hedge and mutual funds.
Before that he was a semiconductor analyst at Wachovia Securities (then-called First Union Securities), and he worked for Deutsche Bank Securities.
Wachovia said, “Karl’s presence in this space will bolster our growing communications equipment franchise and extend our existing semiconductor research efforts. We are excited to have Karl join our team,” when he joined their equity research team in 2001.
Apparently he’s “soft-spoken and serious,” and he coaches youth soccer teams in California. He earned a B.A from the University of Massachusetts, and has been quoted in a variety of media outlets including the New York Times, Businessweek, The Street and CNet.
Mr. Motey was a business contact of a partner of a hedge-fund manager who also is cooperating in the government’s case, people familiar with the matter say.
In May 2009, the government says “CW-2″—identified by the person familiar with the matter as Mr. Motey—”sought out…consulting services” as a Primary Global client…
According to the complaint, CW-2 reached out to Primary Global sales employee James Fleishman and asked him to explain the company’s services. “The service we provide is, you know, whatever you’re looking for, whether it is short-term or long-term, we’ll have people,” Mr. Fleishman said on the call.
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