Accused Hedge Fund Tipster In Plea Deal Talks

Apr 28 2011 | 12:26pm ET

Prosecutors may net two guilty pleas in the Justice Department's massive insider-trading investigation today.

Don Ching Trung Chu, the first of 12 people arrested in the ongoing probe, will waive his right to be indicted by a grand jury at a hearing today, his lawyer said yesterday. While Chu will actually plead not guilty at the hearing, waiving indictment is usually a first step towards a plea agreement.

"I don't have a resolution to this case yet," Chu's lawyer, James DeVita, told Bloomberg News. "I can tell you that he's not requiring the government to go to a grand jury and obtain an indictment against him, but we have yet to resolve this case and it won't be today."

DeVita has apparently been working on a deal for some time; Chu's case has been adjourned a number of times since his November arrest "in the interests of justice." He is free on bail.

Chu was a consultant at "expert network" firm Primary Global Research.

According to prosecutors, Chu passed confidential tips about several companies to former SAC Capital Advisors trader Richard Choo-Beng Lee, who had pleaded guilty in the case. Lee and Ali Far, a former Galleon Group analyst, allegedly used insider information at their hedge fund, Spehrix Capital.

If Chu does plead guilty, he'll be the sixth to do so, after today's guilty plea by former SAC manager Donald Longueuil. Two others, hedge fund manager Samir Barai and former Primary Global consultant Mark Longoria, are known to be in talks with prosecutors, as well.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.