Primary Global Research looks to be the next casualty of the government’s widespread crackdown on insider trading.  The firm shuttered its Mountain View, CA, offices this past month and disconnected its toll-free phone line, yet a PR firm said the company remains open.  The U.S. attorney’s office in Manhattan has alleged that several employees at Primary Global, along with several executive paid to speak with investors – "stepped over the line" by facilitating the sharing of inside information.  The firm itself has not been accused of any wrongdoing.

The company’s name first came to light in November 2010 when executive Don Chu was arrested and charged with facilitating corporate leaks about a publicly traded technology company to hedge funds.  Jeff Fleischman, another executive there, was arrested a few weeks later, along with 3 executives of public companies who worked as consultants for Primary Global.  One of those consultants, Manosha Karunatilaka, pleaded guilty this month.  Meanwhile, another consultant for Primary Global, Winifred Jiau, goes on trial in Federal District Court in Manhattan - starting Wednesday, June 1.   [NYT Dealbook, 5/31/11]