Wednesday, 31 August 2016
Last updated 10 hours ago
Sep 13 2011 | 1:46pm ET
Convicted hedge fund tipster Winifred Jiau should spend as much as a decade in prison for her crimes, prosecutors urged yesterday.
Jiau, who received more than $200,000 between 2006 and 2008 selling confidential information to hedge fund managers and other clients of Primary Global Research, should be sentenced to between eight years and one month and 10 years and one month.
"Should Jiau receive a light sentence, the business community and Wall Street professionals would be emboldened to engage in similar crimes, knowing that such schemes are difficult to detect and that even if their perpetrators are caught, they will not face much time in jail," Assistant U.S. Attorney Avi Weitzman wrote in a sentencing memorandum. "In addition, such a sentence would further shake the public's integrity in the markets by sending the message to the investing public that even when individuals are caught red-handed engaging in an extensive insider-trading conspiracy, they are only lightly punished."
What's more, Weitzman wrote, Jiau, who remains jailed after her June conviction on fraud and conspiracy charges, has done nothing to earn leniency.
"It is now clear that Jiau used guile and manipulation to steal sensitive corporate information from multiple sources in an effort to line her own pocket, without any regard for the harm she caused both the corporations from who she was stealing and the co-conspirators who trusted her," he wrote. In addition, Jiau both sought to cover up her crimes by lying to court officials and planned to flee the country after her arrest, Weitzman wrote.