A cooperating witness in the fed's insider trading probe, dubbed "CW-2," reportedly made over 60 calls with corporate managers, seeking to gather evidence for the government, the WSJournal reports.  CW-2 pleaded guilty to securities-fraud charges but doesn't say when the charges against him were filed or what led to them.

    CW-2 Revealed.   The witness reportedly is Karl Motey, a 46-year-old technology analyst.  Mr. Motey runs Coda Group Inc., an independent research firm in Los Altos, CA, that provided detailed reports about technology companies to a handful of hedge funds and mutual funds.  Before running Coda, Mr. Motey worked as a semiconductor analyst at First Union Securities, now Wachovia Securities, from 2001 to 2006.  He also worked at broker-dealers C.E. Unterberg, Towbin and Deutsche Bank Securities.  Analysts and investors who know him describe him as soft-spoken and serious.

CW-1.   Mr. Motey was a business contact of someone who's also cooperating in the government's case - Richard Choo-Beng Lee, 54, a partner of a hedge-fund manager, dubbed "CW-1."  A Malaysian known for his extensive network of contacts in the technology industry in Asia, Mr. Lee pleaded guilty last year to charges of conspiracy to commit securities fraud and securities fraud in connection with the Galleon Group insider-trading case.  He reportedly agreed to help the government in its investigation, in exchange for leniency when his case is resolved.  Lee's lawyer, Richard Bornstein, says his client has cooperated with the government and will continue to do so.

As CW-2, Mr. Motey was instrumental in last week's arrests of Primary Global Research consultants.  Back in May 2009, "CW-2" reportedly "sought out…consulting services" as a Primary Global client.  The call from Mr. Motey was unusual among Primary Global clients, a person close the situation says, because most clients came to Primary Global through referral.  Yet, 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, according to the complaint.  Mr. Fleishman was arrested on 12/16/10 on charges of wire fraud and conspiracy to provide nonpublic information to Primary Global clients.  He was released on $700,000 bail. 

To continue reading, and get complete details, click onto:  [WSJournal, 12/20]