Wall Street sheriff Preet Bharara arrested a sixth person on charges of leaking secrets as part of his widespread crackdown on insider trading.
Bharara, US Attorney for the Southern District of New York, first broke open the gang of trading cheats involving hedge funds, bankers and consultants a year ago, snaring several executives and traders.
Yesterday, he arrested a Silicon Valley businesswoman accused of peddling technology company secrets to the highest bidders among portfolio managers going back to 2006.
Federal prosecutors said Winifred Jiau, 43, managed to secure inside information on publicly traded tech companies, including chipmakers Marvell Technology Group Ltd. and Nvidia Corp. She allegedly sold her tips to numerous hedge fund players, including the founder of an unidentified New York fund.
One leak alone about Marvell’s second-quarter earnings in 2008 netted the crooked New York hedge $820,000 in trading profits, prosecutors said.
While feds didn’t disclose the New York fund, FBI agents were known to have raided three hedge fund offices last month as part of the widening probe. They included Level Global Investors in New York, Connecticut-based Diamondback Capital Management and Loch Capital Management in Boston.
Bharara said Jiau’s leaks were disguised as services of a “global advisory team of experts,” and were sold for $200,000 in payments, funneled to her through the phony network of experts. Jiau faces up to 20 years in prison if convicted on charges of one count each of insider trading and conspiracy.
She was arrested at her Fremont, Calif., home and held for a bail hearing on Monday in Manhattan.
Her arrest came just two weeks after Bharara busted three tech company executives who allegedly sold secrets about their companies, including Apple and chipmaker Advanced Micro Devices.