Authorities announced on Wednesday that a woman, Winifred Jiau, from the U.S. state of California was arrested at her home in Freemont for allegedly handing over sensitive inside-information on a few companies including Nvidia Corp and Marvell Technology Group Ltd to two unrelated portfolio mangagers at two different hedge funds in return for substantial, illegal payments.
At the scene of the arrest, the FBI reported Jiau to appear cooperative with the arrest. However the dispatched FBI agents also noted that Jiau’s car was running and that her belongings were packed in her house.
According to prosecutors in Manhattan, Winifred “Wini” Jiau, 43, has been charged with securities fraud and conspiracy to commit securities fraud.
Authorities say Jiau, who worked as a consultant for a market research company called Primary Global Res. LLC, gave information to these two hedge funds for a period of roughly two years (from September 2006 to December 2008) in return for $200,000+.
The information, according to sources, was unannounced quarterly results that helped the two enigmatic hedge funds “earn” $800,000+.
If convicted on the charge of securities fraud ”Wini” will have to serve a maximum sentence of 20-25 years and perhaps a fine of $5m+.
Jiau is to be detained by the order of U.S. Magistrate Judge Nandor Vadas in San Francisco until her bail hearing on the 3rd of January.
This latest arrest adds one more to the group of six inside-traders who were caught earlier this year, among them James Fleishman and Don Ching Trang Chu who were both Primary Global Research employees.
As of now, the FBI is showing signs of moving with its war against insider trading on Wall Street towards the hedge funds that have illegally paid these inside-traders for detailed information on multiple companies.
(Cover Photo: Photo by Spencer Platt/Getty Images North America)