At trial, Mr. Nguyen testified that Ms. Jiau repeatedly pestered him with phone calls on his cellular phone and at home before Nvidia was set to report earnings in August 2008, seeking details about the company’s financials. Mr. Nguyen said he finally broke down and shared information about Nvidia’s current and future revenue, gross margins and other financial data after she interrupted him while he was bathing his young son. He pleaded guilty to criminal charges and avoided jail time after he cooperated with prosecutors. [WSJ]
Back in June, the lawyer for Winifred Jiau, expert network empress and accused insider trader, made a simple plea: “Put an end to this misguided prosecution,” Joanna Hendon said. “Send Ms. Jiau back to California, and to her dog.”
While the request might’ve played well with golden retriever lovers, the presiding judge didn’t care. He dragged things out another month, finding Jiau guilty over the summer and later on denying a request for acquittal or a new trial. Was Winifred the person you wanted to work with if you held an elastic view of securities laws and most certainly guilty of insider trading? Unquestionably: yes. Was she an individual who commanded sympathy, leniency or to whom you’d want to throw a bone? Those who benefited from her tips would be the first to tell you hell no.
In fact, she was bossy, she would cancel meetings at the last second, she would demand $300 gift certificates to the Cheesecake factory in one breath and a dozen Thanksgiving lobsters in the next, she would meet you for a pass off of material non-public information and tell you the shellfish you sent were Maine lobsters and she’d specifically request South African lobsters (even though she hadn’t) and then spit in your face and walk away and yes, sometimes you’d sit at your desk after she’d reamed you out over the phone for not giving her “the sugar” and fantasize about various ways you could kill her and make it look like an accident but having said all that: there’s a dog waiting for this lady and judge? She knows people who can make certain that these will be the first words you hear when you wake up and the last one’s you hear before you go to bed, for the rest of your life: Read more »
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]
Expert Network Empress Re-Gifted Insider Trader Noah Freeman’s Lobsters, Cheesecake Factory Gift CardsBy Bess Levin
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 »
Unless you’re also counting those that fell in the “gray area,” in which case, that’s really anyone’s guess. Read more »
Former SAC Capital Trader Noah Freeman Didn’t Appreciate Filling Tipster’s Shellfish Orders, Knowing The Only Thing He Could Do About It Was Bitch And Moan To SecretaryBy Bess Levin
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 »
This could play well with the golden retriever lovers on the jury. 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 »
Bloomberg reports that former SAC Capital trader Donald Longueuil, who was accused last month of securities fraud, has been named in a new indictment concerning information that originated with ex-Primary Global consultant Winifred Jiau and was passed around among Longueuil, his former friend/colleague Noah Freeman, and an unnamed hedge fund manager. Read more »