HedgeCo News - Hedge fund consultant Winifred Jiau has pleaded not guilty to conspiracy and securities-fraud charges in the Galleon investigation. Bail was set at more than $500,000.
According to the Seattle Times, the Judge agreed to the bail "Only after she had pledged to turn over the deed to a $25,000 stretch of land and provide $50,000 in cash to go along with $500,000 in cash and property being posted by three friends. She will be required to wear an electronic monitoring bracelet and mostly remain in her Fremont, Calif., home under terms of the bail. She will not be released until all bail conditions are met."
“Company executives and other insiders moonlighting as consultants to hedge funds cannot blatantly peddle their company’s confidential information for personal gain,” Robert Khuzami, director of the SEC’s enforcement division said.
The SEC filed civil charges of insider trading against six people associated with expert network firms after criminal cases brought earlier by the Justice Department against the same group.
The consultants are accused of leaking privileged information to hedge funds about companies like Advanced Micro Devices, Apple and Dell, about $6 million in illicit gains was made through the tips, the SEC complaint said.