Primary Global Research

Winifred Jiau, a former consultant with expert networking firm Primary Global Research LLC, lost a post-trial bid to overturn her convictions on charges related to insider-trading. U.S. District Judge Jed Rakoff denied Jiau’s motion for an acquittal or a new trial in federal court in Manhattan, where she was convicted June 20 of conspiracy and securities fraud. The jury found her guilty of passing information regarding earnings and other matters on Nvidia Corp. (NVDA) and Marvell Technology Group Ltd. to hedge fund managers Noah Freeman, a former SAC Capital Advisors LP portfolio manager, and Samir Barai, founder of New York-based Barai Capital Management LP. Jiau, of Fremont, California, faces as long as 25 years in prison when she is sentenced by Rakoff. [Bloomberg, earlier]

Winifred Jiau, the Primary Global consultant who worked closing with, among others, ex-SAC portfolio manager Noah Freeman, was found guilty on insider trading charges this morning, after two days of jury deliberations. The 43 year-old Jiau now faces up to 20 years for securities fraud and an additional five years for conspiracy. For the math whizzes in the group, that means she’ll be a mere 68 years old when sprung free. If you’ve been keeping up, you know even those who Wini drove to fantasies of killing her and making it look like an accident (no names: Noah Freeman) couldn’t deny she was the best at providing material non-public information and since there’s no reason to believe she won’t keep her skills sharp while in the joint, anyone looking to hook up with her in 2036 would be wise to write the following down. Read more »

As we have learned from former SAC trader Noah Freeman’s extensive testimony in the government’s insider trading case du jour, expert network analyst Winifred Jiau had a tendency to act irrational, demanding and sometimes plain bitchy. Whether her behavior stemmed from a power trip associated with realizing she was the person anyone who was anyone in the insider trading space wanted to work or she was simply born that way is unclear but regardless, while it may have annoyed some clients, it didn’t stop anyone from buying what she was selling, i.e. inside information that was “precise to the decimal.” Freeman, for example, has go so far as to praise her tips as best in class while sharing that he fantasized about doing her bodily harm, such as when she would make what he felt to be absurd requests like two (2) iPhones, gift cards to clothing stores, the Cheesecake factory and a dozen Thanksgiving lobsters. Apparently, though, the stuff wasn’t for Jiau. She just needed it to land another member of her “club.” Read more »

As previously discussed, one major focus of the government’s insider trading cases du jour is the use of primary networks, whose information those on the prosecution side argue is just too good. Among all the expert network analysts charged, one stands out- Winifred Jiau. The best of the best, Jiau seems to have worked with everyone who’s been accused of trading on material non-public information and for good reason- her information, according to clients, was “precise to the decimal point.” And unlike other expert network analysts, who perhaps weren’t as good or just didn’t know their worth, Jiau was well-aware of just how much her trader friends needed her, and acted as such. In the opinion of former SAC Capital PM Noah Freeman (who pleaded guilty in April, after working with the government to turn over his ex best friend and colleague Donald Longueuil), this was like a bitch.

“Despite her information being very, very accurate, she was very difficult to work with,” said Mr. Freeman, an articulate and confident 35-year-old Harvard College graduate. Among the issues he said that he had with Ms. Jiau: She could be rude, it was hard to get a hold of her and she often canceled meetings at the last minute.

And yet, he couldn’t quit her. When “Poohster” (apparently Freeman and Co’s nickname for Jiau) said jump, Freeman asked how high. Similarly, when Poohster said “buy me an iPhone,” buy me a gift certificate a clothing store no wait I meant the Cheesecake Factory,” and “buy me a bunch of lobsters,” Freeman said “how many,” “for how much,” and “how would you like them delivered?” Read more »

One major focus of the Feds’ insider trading cases du jour is the use of expert networks by hedge fund managers, and whether or not the information is “too” good (the government is of the opinion that it is). While a whole bunch of employees with various expert networks have been charged, one stands out as the leader in the field- Primary Global’s Winifred Jiau, who is the woman you wanted to get in good with if you were looking to (allegedly) trade on material non-public information. Jiau seems to have worked with everyone who’s been accused of insider trading (Donald Longueuil, Noah Freeman, the Goffer brothers and so on and so forth) and presumably had a waiting list for her tips. According to Assistant US Attorney David Leibowitz’s opening statement yesterday, Jiau’s information was “precise to the decimal point,” and even created her own code to discuss such info so that no one would ever catch on to what she and her clients were discussing, should their conversations be tapped.

Leibowitz said Jiau spoke in code, demanding payments for the information, which she called “sugar,” and describing her sources as “cooks” and referring to tips as “recipes.”

For example, if you’d been reading over Jiau’s shoulder on June 3, 2008, you would’ve seen the following IM and while perhaps felt a pang of hunger, been none the wiser: Read more »

The tech-focused fund, run by Philippe Laffont, has not been charged with any wrongdoing (nor have any employees) but they are a client of expert network Primary Global, which the Feds have taken a particular interest in, so it’s possible. [BusinessInsider]

  • 03 Feb 2011 at 2:00 PM

SEC Charges 6 Consultant With Insider Trading

Apparently all those charged worked for ‘expert network’ firm Primary Global Research, which is so far lapping every firm on most employees nailed for this sort of thing. The SEC described their consulting work as simply a front for their real gigs “moon-lighting as tippers.”

  • 16 Dec 2010 at 10:55 AM

Four Arrested On Insider Trading Charges

According to CNBC’s Kate Kelly, those cuffed were Walter Shimoon (of Flextronics), Mark Anthony Longoria (of AMD), Manosha Karunatilaka (of Taiwan Semiconductor North America) and James Fleishman (of Primary Global Research). Read more »