Openings set in ’networking’ insider trading case
Thursday, June 2, 2011
NEW YORK (AP) — Opening statements are scheduled to begin in the first trial to result from a probe by New York City prosecutors into insider trading carried out by market researchers serving hedge funds.
The statements are scheduled to start Thursday for the securities fraud trial of Winifred Jiau (Jow). A jury was selected Wednesday. Jiau was arrested in December in a government crackdown on specialists in the financial industry who pass off inside information about companies as legitimate research. The Freemont, Calif., resident has remained in custody, unable to make $500,000 bail.
Prosecutors say she provided inside information while she worked as a consultant for two years for Primary Global Research, a Mountain View, Calif., firm. She has pleaded not guilty. Eight of 13 people charged in the probe have pleaded guilty.