New Arrest Made in Expert Insider Trading Investigation

Date: Thursday, December 30, 2010
Author: HFN Daily Report

There has been another arrest in the government's ongoing investigation into the alleged links between hedge fund firms and insider information furnished by third-party expert networks.

Winifred Jiau, 43, was arrested Tuesday at her home in Fremont, Calif. and charged with securities fraud, according to a statement from the Manhattan U.S. Attorney's office, which is prosecuting the case.

The government alleged that Jiau obtained insider information, including unreleased financial earnings reports, about numerous companies including computer visualization technology company NVIDIA and semiconductor company Marvell Technology Group.

Jiau allegedly sold the information to two portfolio managers: one who worked at New York hedge fund firm, while the second worked at two different hedge fund firms.

Prosecutors claim that Jiau was paid more than $200,000 for the information.

Jiau is the sixth arrest in the developing investigation.

Two employees of expert network firm, Primary Global Research, Don Chu and James Fleishman are already under arrest.

Three employees of public technology companies have also been arrested and charged with insider trading.

Jiau was due to be arraigned Wednesday morning in federal court in California.