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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR