Samir Barai is co-conspirator 1, or “CC1,” in a complaint filed in December against Winifred Jiau, an ex-consultant for so-called expert-networking firm Primary Global LLC, according to the person, who declined to be identified because the matter isn’t public.
In a Dec. 29 filing, the U.S. described two unidentified hedge fund portfolio managers at different firms who allegedly conspired with Jiau. The case is part of three overlapping probes stemming from the insider trading investigation of New York-based hedge fund Galleon Group LLC.
The government alleged that Jiau, 43, had conversations in May 2008 with the fund managers and provided them with non- public material information about Marvel Technology Group Ltd. and Nvidia Corp. Jiau provided information about Marvell’s earnings, gross margins and public earnings announcements for the first and second quarters of 2008, according to prosecutors.
CC1’s hedge fund earned more than $820,000 as a result of trading on information that Jiau provided on Hamilton, Bermuda- based Marvell’s stock and stock options, prosecutors alleged.
Barai, 39, who previously worked at Citigroup Inc. before starting his own firm, hasn’t been charged with any wrongdoing. He didn’t return calls or e-mails seeking comment. Jiau, of Fremont, California, has said she intends to plead not guilty.
Her attorney, Fred Hafetz, didn’t immediately return a call seeking comment.
The Wall Street Journal reported Barai’s designation by the government earlier. Ellen Davis, a spokeswoman for Manhattan U.S. Attorney Preet Bharara, declined comment.
The government also described a third person, Cooperating Witness 1 or “CW1,” in the case, who was identified by prosecutors as a research analyst who worked for CC1’s hedge fund, according to court papers.
According to the Jiau complaint, CW1 was instructed by CC1 to speak to “various co-conspirators” who worked at publicly traded companies in order to obtain material, nonpublic information which was then traded upon at the fund.
CW1 both listened in on the conversations at the request of CC1 and took contemporaneous notes about these calls on a hedge fund office computer and on a laptop, the U.S. said.
At least two conversations which Jiau had with both hedge fund managers were also recorded, prosecutors said.
The case is U.S. v. Jiau, 10-02900, U.S. District Court, Southern District of New York (Manhattan).
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