Primary Global's Chu Pleads Guilty In Insider-Trading Case

Jun 8 2011 | 11:35am ET

The first man arrested in the Justice Department's ongoing insider-trading investigation became the ninth to plead guilty yesterday.

Don Ching Trang Chu admitted that he sold confidential information to hedge funds during his time with expert network Primary Global Research.

"I occasionally was present for in-person meetings in Taiwan between PGR clients and PGR consultants during which some of the PGR consultants disclosed to the PGR clients material, non-public information," Chu said during his plea hearing in Manhattan federal court. "I understood that the PGR clients intended to use that information in connection with the purchase or sale of securities by the hedge funds for which they worked." Chu's admission comes in the midst of the first trial stemming from the expert-network crackdown, that of former Primary Global consultant Winifred Jiau.

Chu was accused of passing tips to former SAC Capital Advisors trader Richard Choo Beng Lee, who pleaded guilty as part of the Galleon Group insider-trading case.

Chu faces up to 25 years in prison when he is sentenced on Sept. 7, although his plea agreement calls for no more than six months in jail.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note