Ex-Expert Network Consultant Says He Passed Tips To Hedge Funds

Dec 20 2010 | 11:00am ET

The former Dell Inc. employee who pleaded guilty as part of the Justice Department’s insider-trading probe earlier this month said he passed confidential information to hedge funds and other clients of three expert-network firms.

During his allocution on Dec. 10, Daniel DeVore told U.S. District Judge Jed Rakoff that Primary Global Research “bribed” him to offer the insider-information to its clients. DeVore served as a consultant for Primary Global and two other research firms offering expert-network services, and told Rakoff that Primary Global had paid him about $145,000.

DeVore is cooperating with the probe, which has produced the arrests of two Primary Global employees and three other former consultants for the company. He is the first to plead guilty in the case, although former hedge fund manager Richard Choo-Beng Lee is also cooperating in the investigation. Lee pleaded guilty as part of the Galleon Group insider-trading case last year.

The former Dell global supply manager also said he passed tips on to clients of Guidepoint Global and Vista Research, which Guidepoint acquired last year from Standard & Poor’s, between2 007 and August of this year. He pleaded guilty to conspiracy and wire fraud.

Earlier this month, Massachusetts Secretary of the Commonwealth William Galvin subpoenaed Guidepoint, seeking information about the company’s relationship with a hedge fund based in the state.

Prosecutors asked that DeVore’s sentencing be postponed for three years to allow the investigation, which already has been going on for three years, time to run its course. Rakoff granted that request.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note