The expert network employee Don Chu is expected to plead not guilty to charges that he engaged in insider trading today, says Reuters.Chu was one of the first arrested in a wide probe on insider trading via expert networks (insider trading-gate). One of the people he allegedly provided tips to is former SAC Capital employee Richard Choo-Ben Lee, who was working at Spherix Capital at the time.
Lee has already plead guilty.
Chu is set to appear in court today to enter his plea. (He might appear in the same courtroom where Raj Rajaratnam has been on trial for insider trading for the past 7 weeks. Craig Drimal plead guilty to insider trading yesterday in the room.)
“I don’t have a resolution to this case yet,” Chu’s lawyer told Bloomberg. “I can tell you that he’s not requiring the government to go to a grand jury and obtain an indictment against him but we have yet to resolve this case and it won’t be today.”
Bloomberg says that usually happens before someone cooperates with investigators, but Reuters expects that Chu will plead not guilty.
Chu was charged with providing tips about tech companies, including:
- Atheros Communications
- Broadcom Corp
- Sierra Wireless
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.