Stanley Ng, a former Marvell Technology Group Ltd. accountant, was sentenced to two years’ probation for his role in an insider-trading scheme involving the failed expert network Primary Global Research (PGR).
Ng was recruited by Winifred Jiau, a $10,000 per month expert affiliated with PGR. Jiau was retained on an exclusive basis by Noah Freeman, a former SAC Capital Advisors LP portfolio manager, and Samir Barai, founder of New York-based Barai Capital Management LP, both of whom have pleaded guilty.
Ng, who was the Securities and Exchanges Commission reporting manager for Hamilton, Bermuda-based Marvell, pleaded guilty in December, admitting that he passed information about the chipmaker’s earnings in 2007 and 2008 to Jiau.
“Everyone agrees that this defendant is at the very low end of insider trading, a very, very limited offense brought about in large part by his relation to Ms. Jiau,” U.S. District Judge Jed S. Rakoff said. In addition to probation, Ng must perform 400 hours of community service, pay a $2,000 fine and forfeit $6,464.
In contrast, Jiau was sentenced to four years in prison. Since being arrested in December 2010, she was denied bail and held in maximum security facilities for the majority of her time in prison. Subjected to being handcuffed, shackled and caged in a locked cell, Jiau was finally transferred to a federal prison camp in Dublin, CA after a year of incarceration where she will serve the remainder of her 48 month prison term.
Ng’s lawyer, Silvia Serpe, emphasized her client didn’t make any money or trade on any inside information. Jiau allegedly made $200,000 between September 2006 and November 2008 through consultations arranged by PGR. However her sentencing was based on profits made by Freeman and Barai.Subscribe to Integrity ResearchWatch by Email or in an RSS/XML reader