Friday, 9 October 2015
Last updated 15 hours ago
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.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…