Charges filed in high-tech insider trading case

Federal prosecutors allege a California woman committted securities fraud by passing information to hedge funds

Federal authorities have charged a California woman with securities fraud for allegedly passing detailed financial information on Nvidia and Marvell Technologies to portfolio managers at two hedge funds.

Winifred "Wini" Jiau, 43, of Freemont, California, has been charged with one count of conspiracy to commit securities fraud and one count of securities fraud, according to the U.S. Attorney's office for the Southern District of New York on Wednesday.

Jiau, who was arrested at her home on Tuesday, could face a maximum of 25 years in prison if convicted and more than $5 million in fines.

Jiau worked for Primary Global, a Mountain View, California, market research company. Last month, four employees at Dell, Advanced Micro Devices (AMD), Flextronics International and Taiwan Semiconductor Manufacturing Company (TSMC) were arrested on charges for allegedly pocketed hefty consulting fees for selling the insider data to the research company.

Authorities allege that Jiau traded sensitive information on "multiple companies," including Nvidia and Marvell Technologies. The unsealed court documents has not been posted online yet as of Wednesday afternoon. The hedge funds traded on the information, which was provide by Jiau between 2006 and December 2008.

In two instances on May 23 and May 28, 2008, Jiau called portfolio managers at two separate hedge funds and allegedly provided gross margins and earnings per share for Marvell's quarter that ended on May 3, 2008. The information, which prosecutors say Jiau told the money managers was provided by an internal Marvell employee, was accurate and preceded the company's earning announcement.

One of the hedge funds made $820,000 in profits by trading on Marvell's information, prosecutors said. The hedge funds paid Jiau more than $200,000 during the two-year period that she provided the information.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags AMDnvidiainsider trading

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?