Wednesday, November 24, 2010

First Arrest Made In Insider Trading Probe

An East Coast employee of a California research consulting firm is accused of hooking up hedge fund operators with corporate executives who provided inside information. One of the executives who allegedly provided information works for Broadcom Corp. in Taiwan.

Federal prosecutors in New York disclosed charges Wednesday against Don Ching Trang Chu, who works at one of the research firms believed to be part of the government's investigation.

Prosecutors accused Chu of conspiracy for allegedly hooking up hedge fund operators with corporate executives who provided inside information about their companies.

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