Saturday, 29 August 2015
Last updated 1 day ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…