SAN JOSE, Calif. - Winifred Jiau of Freemont, Calif. was arrested this week on charges relating to her involvement in an insider trading scheme, according to the FBI.
According to a complaint, Jiau obtained inside information about multiple publicly traded companies and sold the information to portfolio managers at hedge funds. In return, she allegedly received more than $200,000 over a two-year period.
''Between 2006 and 2008, she obtained inside information, including detailed financial earnings, about multiple publicly traded companies, including Nvidia Corp.and Marvell Technology Group Ltd. Jiau sold that information to portfolio managers at hedge funds,'' according to the FBI.
''The hedge funds then traded on the information provided by Jiau. In return, the hedge funds paid Jiau over $200,000 over the two-year period; such payments were made through an expert networking firm that purported to provide 'institutional money managers and analysts with market intelligence' through a 'Global Advisory Team of Experts,' '' according to the FBI.
She has been charged with one count of conspiracy to commit securities fraud and one count of securities fraud.
U.S.-based employees of Taiwan Semiconductor Co. Ltd. and Advanced Micro Devices Inc. were recently among four men chargedby U.S. government authorities an alleged insider trading scheme.
The real story is in fact corruption that is present even in places that you would be more slef-concious about their company future.
Other trade magazines are not so kind with the AMD people involved.
I hope for the sake of others that this case is brought swiftly and with more transparency as possible. But again, I may be dreamming.
Mark, I assume the reason you didn't name the hedge funds or portfolio managers directly is that those names were not released by the FBI. I'll bet the reason the FBI didn't release them is that they either don't know for sure or they are scared that these people and companies have enough money to hire some very expensive lawyers to cover their butts. In any event, the real story is corruption and it isn't just about one person.
You are right. I know of others that supply information and advice to hedge fund managers. They are hired to help the hedge fund manager understand the companies and when to invest. With many unemployed technical people these days, this is a good way to earn extra income. The problem is that the technical people may still have connections to companies that can supply inside information and they may not know what information is public and what is not.
It sounds like "market intelligence" and "Global Advisory Teams of Experts" are trouble waiting to happen. How do investment companies ensure that the information they obtain isn't insider information? Where is the line drawn? Ideally they should be able to prove that the information came from an external source. However, that reported source might simply be corroborating information after being tipped off to the news by an insider. Once you know the answer, it is often easy to find other supporting evidence.
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