Surprise, surprise – a consultant on the fiddle! Californian Winifred Jiau, 43, has been charged for slipping nonpublic information on public companies to hedge funds as she worked through her expert-network firm.
Giants like Nvidia and Marvell were hot topics for Jiau and she received about $200,000 for her trouble. That’s nothing compared to the $820,000 in profits a hedge fund made after she allegedly leaked information ahead of one of Marvell’s quarterly earnings announcements. The hedge funds have not yet been named, says the Wall Street Journal.
It’s alleged that Jiau’s contact at Marvell worked closely with the Chief Financial Officer while her Nvidia deepthroat was from the department that usually has the loudest voice – sales.
Jiau worked at the dreary sounding Primary Global Research LLC. She may or may not have been told to sling her hook, as the company’s brief statement is: “[Jiau] served as an expert consultant with Primary Global Research from September 2006 through December 2008, at which time the relationship was ended.”
One of the hedge funds allegedly had a chat with Jiau back in May 2008 about Marvell’s quarterly earnings. A dollar sign appeared over a portfolio manager’s head who bought 300,000 shares in just six days before Marvell’s official announcement. Then it liquidated for a profit of “more than $820,000”.