Taped Phone Calls OKed For Jiau Insider-Trading Trial

May 13 2011 | 12:51pm ET

Winifred Jiau cannot catch a break. The former Primary Global Research consultant and accused font of confidential information is the only one of the dozen people charged in the Justice Department's ongoing insider-trading investigation to remain jailed—as a flight risk—and earlier this week lost a bid to have the case against her dismissed.

Now, a federal judge has ruled that Jiau will have to defend herself against herself, or, at least, taped conversations of herself, just a day after wiretaps helped convict Galleon Group founder Raj Rajaratnam.

U.S. District Judge Jed Rakoff in New York yesterday deemed tapes of conversations between Jiau and hedge fund manager Samir Barai were admissible. Unlike the wiretaps in the Rajaratnam case, which were recorded by the Federal Bureau of Investigation, Jiau's calls were actually taped by Barai and his employees at Barai Capital Management: Barai is hearing impaired, and in addition to taping conversations frequently had employees listen in.

"I don't think Sam wanted them to know that a third person was listening," one of those employees, Jason Pflaum, who has pleaded guilty and is cooperating with prosecutors, said yesterday.

Jiau's trial is set to begin on June 1.

In addition to Pflaum, five other people have pleaded guilty in the case, including, this week, former Primary Global consultant Manosha Karunatilaka. In addition, two former SAC Capital Advisors traders, Noah Freeman and Donald Longueuil, have pleaded guilty; Jiau is accused of passing tips to the former. Barai has not yet pleaded guilty, but is in talks with prosecutors.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls 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.