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

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of