an independent consultant in California pleaded guilty and agreed to cooperate with federal prosecutors in a widening U.S

Karl Motey, an independent consultant in California, pleaded guilty and agreed to cooperate with federal prosecutors in a widening U.S. investigation insider trading on Wall Street.

Motey pleaded guilty in federal court in Manhattan on Dec. 14 of conspiracy and securities fraud, according to court documents released today. He got up tips from multiple sources to Marvell Technology Group Ltd. and provided the information to hedge fund clients, according to the charging document.

Motey agreed to tell prosecutors about a regime insider trading that ran from 2007 to March 2009, according to court documents. Also reveal details of advice he received from a source with Taiwan-based United Microelectronics Corp. and "employees of a California hedge fund," according to court documents.

An accomplice who does not identify "provided inside information to Karl Motey" on "and Marvell Marvell customers," according to the criminal information.

Chitung Liu, Hsinchu, financial director at Taiwan-based UMC, said he had not heard of the case and had not been contacted by U.S. authorities. The company has strict controls on its internal information, he said.

Tate Tran, a spokesman for Marvell, did not immediately return voicemail messages left at his work and mobile phones today. Lee Altshuler and Alexandra Shapiro, Motey lawyers did not return phone calls seeking comment.

Smartphone processors

Motey appears on the records of the state of California as an agent in Los Altos, California, Inc., based Coda Group, formed in 2000. A message left at his home was not returned.

Marvell, based in Hamilton, Bermuda, makes the processors that run smartphones. United Microelectronics is the global chip manufacturer contract second.

Prosecutors announced last week on charges of abuse of privileged information against four people working in technology companies and a fifth man, James Fleishman, who worked in a company of expert networks, Primary Global Research LLC. Of those five, Daniel DeVore, former manager of global supply of Dell Inc., pleaded guilty and is cooperating with prosecutors.

According to the complaint last week, prosecutors had the help of four other people besides DeVore. The Wall Street Journal reported on December 20 Motey who was one of them. He is identified in court papers as "CW-2."

In the complaint last week, prosecutors said they recorded a phone call between "CW-2", which was then cooperating with the government, and Fleishman, whose work in the global primary dealers was put in contact with so-called experts working in public enterprises.

'Winning design'

"During the call, CW-2, Fleishman provided with a list of things that CW-2 wanted to learn from a consultation about Marvell, Marvell including whether he had obtained a" design win "in Western Digital and Seagate," the complaint said, referring to Western Digital Corp. and Seagate Technology Plc.

A design win is when a technology company has chosen to use another company's product in their products.

Since October 2009, federal prosecutors in New York have filed charges against two dozen operators of hedge funds, corporate information, the network expert executives and lawyers as part of a campaign against the extension of use privileged information. At least 16 have pleaded guilty. As Motey, many have agreed to assist the government in exchange for leniency. When he is sentenced, Motey faces up to 25 years in prison, prosecutors said.

Among those charged in the investigation of insider trading is Raj Rajaratnam, co-founder of Galleon Group LLC. He faces trial in February and denies irregularities.