Another Defendant Emerges in Insider Trading Inquiry

[Joanne98]

Source: NYT

Federal authorities on Wednesday charged Winifred Jiau with conspiracy and securities fraud — in the ever-widening insider trading investigation.

Prosecutors allege that Ms. Jiau provided two money managers at different hedge funds with non-public information about Marvell Technology Group and other companies. Shortly thereafter, one hedge fund manager, through a prime broker, bought more than 118,000 shares of Marvell.

According to the complaint, Ms. Jiau provided details about Marvell’s earnings for the first and second quarters of the fiscal year 2008. At the same time, she is said to have shared the profits of another tech company, Nvidia. For such information, the hedge funds paid Ms. Jiau more than $200,000 between Sept. 2006 and Dec. 2008, the complaint noted.

The latest case comes a couple weeks after prosecutors arrested an official at expert network firm Primary Global and three executives for insider trading. As with those previous cases, the one against Ms. Jiau relies heavily on the use of recorded conversations.


Read more: http://dealbook.nytimes.com/2010/12/29/another-defendant-emerges-in-widening-insider-trading-investigation/

[DCKit]

1. Still small fry. I wanna see 'em nab a whale shark. nt

[dballance]

2. The Big Guys Almost Never go Down

As someone said "you're never guilty until you're broke." Or poor.

[AndyTiedye]

5. And If They Have to Go Down, They Tend to "Die"

[xchrom]

3. i'm glad she's being prosecuted -- but she isn't one of the Big Kahunas here.

and if she gets to keep most of her ill gotten gains -- then there's no real punishment.

[Ford_Prefect]

4. The "little fish" can lead to bigger fish...

The "little fish" can lead to bigger fish... They have the least protection from prosecution and can, and have lead to much bigger fish or the exposure of a system feeding the bigger fish. That we are even hearing of these warrants suggests a much larger set of information. Usually an investigation of industrial scale mis-behavior has quite a large pool of proven evidence to work with. Typically there will be a number of lower level cases to establish the range of players involved. The cases are used to show a network of individuals and integrated behavior that feed the bigger fish. It can take a while to reach those near the top and rarely gets all of them. However one good thing an investigation provides is evidence of what to prevent and how...very useful when arguing for corrective regulation.