Wednesday, 30 July 2014
Last updated 1 hour ago
Jun 16 2011 | 11:40am ET
Prosecutors continued to build their case against Winifred Jiau, accused of trafficking insider-information to hedge funds, calling one of her alleged sources to the stand.
Jurors had already heard from two former hedge fund employees, who testified that Jiau, formerly a consultant for Primary Global Research, had passed them confidential information in exchange for tens of thousands of dollars. Yesterday, they heard from a man who allegedly gave her that information.
Sonny Nguyen, a former financial analyst at Nvidia Corp., testified that he gave Jiau information about his company's quarterly earnings in 2008.
"She was asking me to provide Nvidia's inside information," Nguyen said. "I had access to all the company's financial data."
Nguyen, who pleaded guilty in the case last month, said he met Jiau while she was working as a contract employee at Nvidia, a chipmaker, in 2007. Jiau didn't pay Nguyen for the tips, he said, instead offering him stock tips and gifts in exchange, including the dozen live Maine lobsters that former SAC Capital Advisors trader Noah Freeman testified he sent her.
The only problem was, Jiau didn't pick the lobsters up in time. When she and Nguyen went to FedEx to get them, they were dead.
Nguyen said he only tipped her off once, the day before Nvidia's earnings announcement. He said he had become "annoyed" after Jiau repeatedly tried to reach him, both at work and at home. When he finally answered one of the calls, Nguyen said he gave her the information after she gave him "a guilt trip."
"She was my friend," Nguyen said. "I trusted her, so I felt loyal. I was doing her a favor. But the other thing that took me over the top—I grew really impatient. I just wanted her to go away, so I gave her what she wanted."
"My understanding was that she was going to buy or sell for personal gain," Nguyen said.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…