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Insider Trading Case: Witness Revealed — Investigation to 'Grow Significantly'

The Wall Street Journal has revealed the identity of the government's cooperating witness CW-2.

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According to the article by Susan Pulliam, CW-2 is Karl Motey — a 46 year old technology analyst who runs Coda Group, a research firm in Los Altos, California.

The Journal cites a "person familiar with the matter" as the source of the revelation: Neither Motey, nor the FBI, nor the Manhattan U.S. attorney's office would comment.

The Journal reports that "Mr. Motey [is] near the center of the action in helping federal authorities develop evidence to bring charges" We already know about the witness, identified as CW-2, from the government's complaint.

The WSJ reports that: "A key cooperating witness working for the U.S. in a major insider-trading investigation made more than 60 calls with corporate managers, seeking to gather evidence for the government…"

That witness is later identified as CW-2 — whom we now believe to be Motey.

The government has also revealed that CW-2 has pleaded guilty to securities-fraud, although the government has not revealed when the charges were filed or what led to them.

But the bigger news — as reported by the Journal — may be this: "the insider-trading investigation could grow significantly from the initial charges."

It's enough to make you wonder: Who is leaking to Pulliam — and when will the next round of charges be filed if the investigation does "grow significantly"?

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