Hedge Fund Tipster's Conviction Upheld

Oct 24 2013 | 10:20am ET

Winifred Jiau, one of the expert-networkers convicted of passing tips to hedge fund managers, will not be getting out of prison.

The U.S. Second Circuit Court of Appeals in New York yesterday rejected Jiau's appeal yesterday, upholding her conviction on conspiracy and securities fraud charges. Her lawyers had argued that the trial judge should not have allowed the jury to hear wiretapped phone calls between her and hedge fund manager Samir Barai, and that the information she provided was not material.

Jiau, a former consultant at Primary Global Research, was convicted in June 2012 of selling confidential information about two technology companies to two hedge fund managers. She was sentenced to four years in prison—which she has already served nearly three of—and could be released in June.

While it appears she'll have to serve out the rest of that term, she won't have to forfeit the $3.12 million ordered at trial. The Second Circuit tossed that part of the sentence, citing a decision in an unrelated case, and sent it back to the trial court for recalculation.

Jiau's lawyer said she would consider a further appeal.

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