Manhattan U.S. Attorney Preet Bharara is about to face one of his final opponents in his massive probe of insider trading involving “expert networking” firms and hedge-fund managers, the New York Post reported.
His opponent is James Fleishman, a former vice president at Primary Global research.
As a reminder, Fleishman is one of the traders who were caught on tape saying “Oh Crap!” after Raj was arrested.
From the Post:
Fleishman is accused of acting as a middleman to a pair of traders seeking illegal tips on companies like Advanced Micro Devices. Mountain View, Calif.-based Primary Global gets paid to match industry experts with investors and others seeking insight into companies.
He is one of 14 people charged in the case involving a string of arrests. The others have either pleaded guilty or have been convicted, according to FinAlternatives.
Fleishman pleaded not guilty back in February to conspiracy to commit insider trading and conspiracy to commit wire fraud, the WSJ reported.
Instead, he decided to take his case to trial, despite Bharara’s success rate in prosecuting insider trading cases.
His trial starts today.
The prosecution claims they have phone conversation recordings and emails showing Fleishman acted as a middleman by introducing traders and executives he knew would give them illegal tips, the Post said.
From the Post:
In one exchange, Fleishman and another Primary Global employee, Bob Nguyen, discuss setting up a hedge-fund client with experts who can provide “fast money” tips, prosecutors said.
In another instance, Fleishman tells a Primary Global client he doesn’t release the last names and personal contact information of its experts in order to “protect [the experts] from investor relations” officials at the companies where they worked.
Fleishman’s attorney, Ethan Balogh, filed a motion in a New York federal court earlier this month to have wiretaps tossed out. That bid, however, was lost.
Then another bombshell emerged in the case.
In a defence filing earlier this month, an attached letter dated July 15 linked Primary Global executives, including CEO Unni Narayanan and COO Phani Kumar Saripella, to Fleishman’s case. They were both identified as Fleishman’s “co-conspirators”.
Neither of the executives have been charged with any criminal wrongdoing, yet.