New York (HedgeCo.Net) – Jason Pflaum, a former research analyst with the hedge fund Barai Capital Management (BCM), was sentenced to time served, followed by two years of supervised release, for his participation in an insider trading scheme in which Pflaum obtained material, non-public information (inside information) about various publicly traded companies and provided it to the head of BCM, Samir Barai.
Pflaum pled guilty in December 2010 to one count of conspiracy to commit securities fraud and one count of securities fraud pursuant to a cooperation agreement with the government.
Pflaum’s testimony during the criminal trial of Winifred Jiau, and the government’s sentencing submission in his case: From mid-2008 through October 2010, while working as an analyst for Barai, Pflaum obtained inside information about publicly traded technology companies and provided it to Barai, who then traded on it.
In one example, Pflaum obtained inside information from company insiders who worked as “experts” or “consultants” for the expert network firm Primary Global Research (PGR) and provided it to Barai. BCM paid PGR a fee, and PGR in turn paid the experts to talk to Pflaum.
Editing by Alex Akesson
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