Primary Global Trial Testimony Ends With iPad Tip

Sep 16 2011 | 4:54am ET

The trial of former Primary Global Research salesman James Fleishman drew to a close yesterday—with Fleishman declining to take the stand, or put up a defense of any kind.

Both the prosecution and defense in the insider-trading case rested yesterday. U.S. District Judge Jed Rakoff said that closing arguments would be held on Monday, after which he said he’d hand the case to the jury.

Prosecutors say Fleishman helped arrange phone calls and meetings between Primary Global clients, among them many hedge funds, and its consultants, mainly corporate insiders. Fleishman has denied the allegations—one of three of the 15 people charged in the case not to plead guilty. He claims his work was legitimate and that he did not know that his consultants were trading in confidential information.

The last witness in the case was former Samsung Electronics Co. manager Suk-Joo Hwang. Yesterday, he testified that he tipped off a hedge fund manager named “Greg” about Apple Inc.’s iPad tablet four months before its release—with Fleishman present.

Hwang said the hedge fund manager was “very excited” about the tip. He told the jury that “Greg” and Fleishman “didn’t know” about the iPad, which Samsung was providing screens for.

Hwang was granted immunity from prosecution for his testimony. On the stand, Hwang admitted that he had lied to the Federal Bureau of Investigation when they approached him in October. And under cross-examination, he admitted that he continued to pass tips to fund managers even after he stopped working for Primary Global.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.