Friday, 30 January 2015
Last updated 12 min ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…