Tuesday, 22 July 2014
Last updated 2 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…