Don Chu is the first arrest* in the latest insider trading scandal.
He’s an Asia “specialist” from SF-based Primary Global Research, the one expert network that was mentioned in the Journal’s initial report.
He was arrested this morning, said CNBC, who said that Chu was arrested because in 2008, Chu “conspired to promote the firm’s consultation services by arranging for insiders at publicly-traded companies to provide nonpublic information to the firm’s hedge fund clients for the purpose of executing profitable securities transactions.”
But there may be another reason he was arrested this morning – he was scheduled to depart to Taiwan on November 28.
UPDATE: We have the full complaint that explains why the Feds arrested Don Chu.
UPDATE #2: Don Chu has been fired.
The companies he reportedly gave information about include:
- Atheros Communications
- Broadcom Corp
- Sierra Wireless
The hedge fund he gave information to isn’t clear yet.
Chu’s arrest suggests that more experts will be arrested soon. And that maybe the Feds are more willing to arrest “experts” than they are the financiers who have been implicated.
Here’s what we know about Chu:
- He’s is PGR’s bridge to Asia experts and data sources.
- He was a 25-year veteran in Data Communications Industry who was with Bell Labs for more than 10+ years in data, wireless, and telecommunications arena.
His company’s website basically advertises that he’s got insider information:
- He has “great view” of the technologies sector in Taiwan and China, says PGR, from fab, fabless (a fabless semi-conductor company is a semiconductor company that doesn’t make their own semi-conductors, they just design them) through OEM/ODM players.
- Don “intimately” understands the wireless broadband communications industry, says the site, and has “deep connections” and “relationships” in the technology industry.
- He has vast experience and connections that allow Primary Global Research to gather high quality data on the Asian market.
- Finally, they say, Don is just a fun person to travel with on the highways and byways of Taiwan.
* Other people that have been arrested are involved in this case, too, but Don Chu is the first *new* arrest since the FBI began its hedge fund raid parade.