Stanley Ng, a former Marvell Technology Group Ltd. (MRVL) accountant, pleaded guilty to his role in an insider-trading scheme involving so-called expert networking firms.
Ng today admitted passing information about Marvell’s earnings in 2007 and 2008 to two members of an “investment club” that prosecutors said was set up to trade illegal stock tips. The government said Ng was recruited into the group by Winifred Jiau, a former consultant with expert-networking firm Primary Global Research LLC who was convicted in June.
“I provided material, nonpublic information to Winifred Jiau and Sonny Nguyen about Marvell’s quarterly financial results before those results were made public,” Ng told U.S. District Judge Jed S. Rakoff in Manhattan. “In exchange I received similar stock tips from my co-conspirators.”
Ng pleaded guilty to a single count of conspiracy to commit securities fraud and wire fraud, punishable by as much as five years in prison, according to Rakoff. A plea agreement between Ng and the government states that federal sentencing guidelines call for him to get six months to one year, Rakoff said.
Nguyen, a former employee in Nvidia Corp. (NVDA)’s finance department, pleaded guilty in May and testified against Jiau.
Jiau was convicted of one count each of conspiracy and securities fraud for passing earnings and other information about Nvidia Corp. and Marvell to two hedge fund managers.
They were Noah Freeman, a former SAC Capital Advisors LP portfolio manager, and Samir Barai, founder of New York-based Barai Capital Management LP.
Rakoff in September sentenced Jiau to four years in prison.
Jurors at Jiau’s trial saw evidence that Barai’s fund bought hundreds of thousands of shares of Marvell stock in May 2008 after obtaining information Jiau allegedly got from Ng.
Prosecutors showed the jury evidence that Jiau had worked at Nvidia briefly in 2007. She befriended both Nguyen and Ng to get the information she then sold to Barai and Freeman, prosecutors said.
Ng was hired by Marvell in 2002 to be the company’s Securities and Exchange Commission reporting manager, the government said. He had access to company financial records and regulatory filings before they became public, according to prosecutors.
Ng remains free on a $50,000 bond secured by his home in Cupertino, California. He’s scheduled to be sentenced April 9.
The case is U.S. v. Ng, 11-02096, U.S. District Court, Southern District of New York (Manhattan).
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