Ex-Barai Analyst Gets 2 Years’ Probation in Insider Trading CaseBob Van Voris and Patricia Hurtado
Ex-Barai Capital Management LP analyst Jason Pflaum, who testified as a government witness in the insider-trading trial of a former Primary Global Research LLC consultant, was sentenced to two years of probation.
U.S. District Judge Jed Rakoff in Manhattan imposed the sentence today during a 10-minute hearing.
Pflaum was a key government witness at a federal trial of Winifred Jiau, a former Primary Global consultant who was convicted of illegally passing tips about Nvidia Corp. and Marvell Technology Group Ltd. to hedge fund managers, including Pflaum’s former boss, Samir Barai.
During Jiau’s trial in New York in June 2011, Pflaum testified that he listened to and recorded phone calls between Jiau and Barai, who is hearing-impaired. Pflaum also said he wrote contemporaneous electronic instant messages to Barai to help him keep up the conversation with Jiau, as she passed tips about publicly traded technology companies.
Pflaum also testified that at least eight people provided Barai with nonpublic information about technology companies, including Mark Anthony Longoria, a former employee of Advanced Micro Devices Inc. Pflaum said he destroyed the files related to those tippers without deleting files related to Jiau.
Pflaum, who worked for Barai from March 2008 to January 2011, pleaded guilty in February 2011 to conspiracy and securities fraud charges.
Pflaum provided help to the government on numerous investigations and led the U.S. to Noah Freeman, a former SAC Capital Advisors LP portfolio manager who was a friend of Barai’s, prosecutors said.
The case is U.S. v. Jiau, 11-cr-00161, U.S. District Court, Southern District of New York (Manhattan).