For the second time in as many weeks, a federal judge has refused to vacate an insider-trading conviction.
U.S. District Judge Jed Rakoff yesterday rejected Winifred Jiau’s motion to set aside her June conviction on securities fraud and conspiracy charges. He did not elaborate, as U.S. District Judge Richard Holwell did last week in upholding Galleon Group founder Raj Rajaratnam’s conviction.
Jiau, a former consultant for expert-network Primary Global Research, was found guilty of selling confidential information about two technology companies to two hedge fund managers. But her lawyer, Joanna Hendon, had argued that prosecutors failed to show that those hedge fund managers actually traded on that information.
“The government’s repeated urging of the jury to convict Ms. Jiau on the basis of speculation was improper,” Hendon wrote. “Simply put, the government failed to introduce evidence that Sam Barai—the person to who Ms. Jiau conveyed information about [Marvell Technology Group]—caused, directly or indirectly, [hedge fund Barai Capital Management] to by a single share of Marvell securities based on that information.”
Prosecutors countered that their evidence “undoubtedly supported the jury’s verdict.”
Jiau faces up to 25 years in prison when she is sentenced on Sept. 21.