Monday, 24 October 2016
Last updated 2 days ago
May 10 2012 | 10:53am ET
The courts have closed two more chapters in the expert-network insider-trading scandal that ensnared several high-profile hedge funds, driving three of them out of business.
Stanley Ng, who pleaded guilty last year to passing confidential information about his employer, Marvell Technology Group, to Primary Global Research consultant Winifred Jiau, was sentenced to two years of probation yesterday. Ng's plea agreement had called for between six months and one year in prison.
Jiau was convicted in June of selling Ng's information, in addition to tips from others, to three hedge funds. She was sentenced to four years in prison.
Separately, another convicted player in the scandal saw the Securities and Exchange Commission's civil case against him come to an end. U.S. District Judge Jed Rakoff has approved PGR sales executive James Fleishman's settlement with the SEC. That deal bars him from the financial industry, and also spares him further financial penalties beyond the $49,150 he was ordered to pay in disgorgement in the criminal case against him.
Fleishman is currently serving a two-and-a-half year sentence for passing confidential corporate information to hedge fund managers and other PGR clients.