Four Arrests And Guilty Plea In Expert-Network Insider Case

Dec 16 2010 | 2:31pm ET

The ongoing federal investigation into insider-trading has produced four more arrests and its first guilty plea.

An employee of Primary Global Research, a provider of the expert network services at the center of the investigation, and three of Primary Global's former experts were all arrested this morning. A fourth former Primary Global consultant, Daniel Devore, pleaded guilty to fraud charges on Friday and is cooperating with investigators.

The new arrests come several weeks after authorities slapped the handcuffs on Don Chu, who also worked at Primary Global, which is based in Mountain View, Calif.

Now joining Chu are Primary Global sales executive James Fleishman, Walter Shimoon of Flextronics International, Mark Longoria of Advanced Micro Devices and Manosha Karunatilaka of Taiwan Semiconductor North America. Devore was global supply manager at Dell.

Chu was charged with providing insider information to Richard Choo-Beng Lee, a former SAC Capital Advisors trader who has pleaded guilty in the Galleon Group insider-trading case and is cooperating with investigators. AMD, where Longoria works, is one of the companies whose securities were allegedly traded illegally by Galleon Group founder Raj Rajaratnam, although his sources allegedly were former CEO Hector Ruiz via former co-defendant Danielle Chiesi and former McKinsey & Co. director Anil Kumar, who has pleaded guilty in that case.

Shimoon served as a consultant for Primary Global from 2007 until last month. Longoria did so from 2006 until earlier this year and Karunatilaka from 2007 until earlier this year. Primary Global said it is "suspending" the employment of Fleishman, who joined the firm four-and-a-half years ago.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.