PGR Sales 'Knew Full Well' He Sold Illegal Tips, Prosecutors Say

Sep 1 2011 | 12:00pm ET

Former Primary Global Research sales manager James Fleishman "knew full well" he was selling confidential information to hedge funds, prosecutors said yesterday at the opening of Fleishman's insider-trading trial.

Fleishman put those hedge funds and other clients of the expert-networking firm in touch with corporate insiders who then passed on non-public information. Primary Global reaped hundreds of thousands of dollars for its services, Assistant U.S. Attorney Antonia Apps told the jury, which was seated yesterday morning.

"This is a case about stock traders on Wall Street getting an illegal edge," she said. "If you know tomorrow's news today, you can make money—big money."

And for his part, Fleishman "earned hundreds of thousands of dollars of commissions."

Apps said that three former Primary Global consultants that Fleishman put them in touch with clients to whom they spilled the beans. Prosecutors opened their case yesterday with Karl Motey, head of research firm Coda Group and a cooperating witness in the case.

Motey testified briefly about his cooperation and his guilty plea on criminal charges. He'll resume his testimony today.

Before Motey took the stand, Fleishman's lawyers said their client had no idea Primary Global's consultants were providing insider information.

"Mr. Fleishman did his job honestly and honorably," Jay Nelson said. "Mr. Fleishman believed that these consultations were proper and appropriate, and that they were what made PGR a good business."


In Depth

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...