Hedge Fund Tipster's Lawsuit Against Lawyer Junked

Feb 14 2014 | 8:05am ET

Winifred Jiau can't pin her conviction on insider-trading charges on her former lawyer, a federal judge ruled.

U.S. District Judge Paul Engelmayer on Wednesday dismissed Jiau's malpractice lawsuit against Joanna Hendon, who represented her at her 2011 trial. Jiau was convicted of selling confidential corporate information to two hedge fund managers and was sentenced to four years in prison.

Jiau, a former consultant for expert-network Primary Global Research, alleged that Hendon failed to properly investigate the allegations against her, refused to negotiate a plea agreement and "conspired" with prosecutors to let one of their witnesses testify falsely. Hendon's former law firm, Morgan Lewis & Bockius, said it was Jiau's allegations that were "false," while Engelmayer said simply that the malpractice claim "fails."

The dismissal is only the latest courtroom defeat for Jiau since her June 2011 conviction. Repeated attempts to have that jury verdict thrown out have failed, most recently in October before the U.S. Second Circuit Court of Appeals. The trial judge, U.S. District Judge Jed Rakoff, so tired of her personally-filed motions that he warned her in 2012, "all future pro se motions will be returned unread."

Jiau is set to be released in June.

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