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Insider Trading: Another Guilty Plea

June 7, 2011

U.S. District Judge Jed Rakoff in Manhattan, will hear today from, yet, another 'expert' who will plea guilty to passing inside information.  Don Ching Trang Chu, an expert consultant to hedge funds, and former employee of Primary Global Research, following extensive discussions with prosecutors. Chu worked as the Taiwan liaison for Mountain View, CA-based Primary Global.  He was arrested in November and charged with arranging for insiders at publicly traded companies to provide confidential information to Primary Global clients. 

He's accused in connection with one of 3 alleged overlapping insider trading rings that included Galleon Group's Raj Rajaratnam.  Prosecutors said Chu passed tips to Richard Choo-Beng Lee, a former partner at San Jose, CA-based Spherix Capital, beginning in late 2008. 

The case is U.S. v. Chu, 11-CR-32, U.S. District Court, Southern District of New York (Manhattan).    [Bloomberg, 6/7/11]