SEC Sues Six Nabbed In Insider-Trading Investigation

Feb 3 2011 | 3:15pm ET

The Securities and Exchange Commission has filed civil charges against six people arrested in the Justice Department's wide-ranging insider-trading probe.

Four former consultants for expert-network firm Primary Global Research and two of the firm's employees are accused of helping hedge funds and other clients earn $6 million in ill-gotten gains by passing on confidential information. In return, according to the lawsuits, Primary Global and the consultants earned hundreds of thousands of dollars in fees.

Daniel DeVore, a former global supply manager at Dell Inc., Winifred Jiau, Mark Longoria, formerly of Advanced Micro Devices, and Walter Shimoon, formerly of Flextronics International, were accused of passing on inside tips. Primary Global's Bob Nguyen and James Fleischman were accused of acting as conduits for the illicit tips.

DeVore and Nguyen have pleaded guilty and are cooperating with the investigation.

"Company executives and other insiders moonlighting as consultants to hedge funds cannot blatantly peddle their company's confidential information for personal gain," SEC enforcement chief Robert Khuzami said. "These PGR consultants and employees schemed to facilitate widespread and repeated insider trading by several hedge funds and other investment professionals."

The SEC is seeking injunctions, disgorgements and fines against the six people sued. It also wants DeVore, Longoria and Shimoon barred from serving as an officer or director of a public company.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

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

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.