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.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…