Wednesday, 1 October 2014
Last updated 1 hour ago
Jun 27 2012 | 12:00pm ET
The president of a research firm has pleaded guilty to charges that he participated in the expert-network insider-trading scheme.
Tai Nguyen, who heads Insight Research, entered his plea in New York federal court yesterday, the same day he surrendered to the Federal Bureau of Investigation. He faces up to five years in prison on the conspiracy to commit fraud charge, although U.S. District Judge Naomi Reice Buchwald indicated he'd likely receive less.
Nguyen's name first emerged in connection with the case against former SAC Capital Advisors trader Donald Longueuil, who pleaded guilty as part of the case last year.
Nguyen told the court that he passed "material non-public information" about medical and veterinary device-maker Abaxis to hedge fund manager Samir Barai and former SAC analyst Noah Freeman. The scheme ran from 2006 through 2009.
“I agreed with others to violate and defraud the U.S. and took material nonpublic information from an insider and provide it to Sam Barai and Noah Freeman,” Nguyen said. “I know my conduct was illegal.”
The Securities and Exchange Commission has also sued Nguyen, saying that he earned $147,000 himself trading on the Abaxis tips, which he allegedly received from his brother. Nguyen's clients allegedly made $7.2 million in illicit profits.
Nguyen is the 64th person to plead guilty or be convicted of insider trading during the government's crackdown. Buchwald allowed him to remain free, pending his Nov. 8 sentencing, on $500,000 bond.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...