A former portfolio manager for FrontPoint Partners pleaded guilty yesterday to insider trading, and Federal prosecutors resumed their insider trading indictments with the arrest of a former accountant at Marvell Technology Group Ltd who is accused of giving material non-public information to an expert affiliated with Primary Global Research (PGR). The arrest is further evidence that the insider trading investigation is still active and expanding its reach.
Joseph F. “Chip” Skowron admitted yesterday that he had avoided $30 million in losses by selling his holdings in Human Genome Sciences after learning from Dr. Yves Benhamou of a major setback in a clinical trial for Albuferon, a hepatitis C drug. Skowron faces up to five years in prison and will pay a $5 million fine.
Stanley Ng was arrested by Federal Bureau of Investigation agents last week and charged with providing Marvell’s quarterly earnings information before it was publicly announced to Winifred Jiau, an expert working with PGR, and to Sonny Nguyen, a former Marvell colleague who went on to work at Nvidia Corp. Jiau was convicted in June of obtaining inside information about Marvell and Nvidia from Ng and Nguyen.
The complaint against Ng is the 18th insider trading case brought against people associated with expert networks (for a full list, go to http://www.integrity-research.com/cms/whos-who-in-the-expert-network-investigations/.) Of these, 16 have pleaded guilty or been convicted. The FBI reportedly dubbed the probe “Investigation Matchmakers.”
Unlike Jiau who reportedly earned $200,000 from consultations over a two year period, Ng and Nguyen were given iPhones and live lobsters as gifts, and taken to lunch at the Cheesecake Factory and elsewhere.