The U.S. Attorney for the Southern District of New York this morning announced the first arrest in connection with a wide-rainging investigation of insider trading networks among research firms, hedge funds, mutual funds and other investment advisers. Don Ching Trang Chu, an executive at what prosecutors described as an “expert networking” firm, was arrested Wednesday morning and charged with conspiracy. The U.S. Attorney’s Office for the Southern District of New York and the FBI jointly charged that Chu “arranged for insiders at publicly traded companies to provide material, nonpublic information to [his] firm’s hedge fund clients for the purpose of executing profitable securities transactions.”

Read the news release from the U.S. Attorney’s office here: http://www.justice.gov/usao/nys/pressreleases/November10/chudonarrestpr.pdf.

Here’s the latest on HedgeWorld: http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail17770.html

This entry was posted on Wednesday, November 24th, 2010 at 11:21 am and is filed under insider trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.