Winifred Jiau, aka “Wini,” was arrested today for allegedly giving insider information on Nvidia and Marvell Technologies, reports CNBC.
Her official charges are conspiracy and securities fraud.
Here’s what she did, according to the FBI:
On May 23 and May 28, 2008, JIAU had telephone conversations with two portfolio managers at separate hedge funds, during which she advised the portfolio managers of Marvell’s quarterly revenues, gross margins and earnings per share (“EPS”) for the Marvell quarter ending on May 3, 2008.
Similarly, in August 2008, JIAU provided the same hedge fund managers with Marvell’s quarterly revenues, gross margins and EPS for the following quarter, ending on August 2, 2008. Both times, the information JIAU provided was on point and accurate and preceded Marvell’s public announcement of its quarterly financial results. In her conversations with the hedge fund managers, several of which were recorded by one of the hedge fund managers, JIAU made clear that she received the Inside Information from an employee at Marvell.
By trading on the Inside Information JIAU provided regarding Marvell’s earnings for the quarter ending May 3, 2008, one of the hedge funds netted profits of over $820,000 from trades in Marvell securities.
43-year old Jiau was employed by an unknown expert network to give information to hedge funds, which apparently paid her $200,000 between 2006 and 2008 for the information. A small price to pay for nearly a million dollar profit.
Bloomberg says she is scheduled to appear today in U.S. district court in California.
Jiau is the latest arrest in the big insider trading scandal that is sweeping the hedge fund industry.
She’s the sixth person who’s been arrested since the probe began in November.
Four were arrested on December 16th. Click here to read more >
Don Chu was arrested on November 26th. Click here to read more >
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