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

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps 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.