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ReutersAn executive of an “expert networking firm” was arrested Wednesday and accused of insider trading-related charges that are part of a broad investigation of hedge funds by U.S. prosecutors.
The criminal complaint unsealed in U.S. District Court in New York said Don Ching Trang Chu, also known as Don Chu, promoted the services of his California-based firm, Primary Global Research, by arranging for corporate executives to leak inside information to hedge funds.
Mr. Chu’s arrest stems from the co-operation of Richard Choo-Beng Lee, a fund manager who pleaded guilty last year as part of the prosecution of Galleon Group hedge fund founder Raj Rajaratnam and 22 other traders, lawyers and executives.
Prosecutors described that case as the biggest probe of insider trading at hedge funds in the United States, but the investigation has widened to include subpoenas of several funds with billions of dollars under management.
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