Judge Revokes Bail of Insider-Trading Tipster

Winifred Jiau

Winifred Jiau will be the government’s guest for the foreseeable future, as she cools her heels in the big house for allegedly passing inside information. She’s been there since December after having pleaded not guilty to charges of securities fraud. Yesterday, the judge revoked her $500,000 bail as details of a bizarre plot to flee the country surfaced.

Jiau, who had been a consultant for Primary Global Research, is charged with passing inside information to two separate hedge funds. Jiau was done in by a friend after she hinted to the friend – in Chinese – that she had plans to flee the country once bail was posted. Jiau’s friend was one of several thought to be raising bail for Jiau. 

Prosecutors claim that the friend was told on January 13 that Jiau had moved assets to mainland China in October. Jiau has dual citizenship in the U.S. and Taiwan. Jiau also had failed to disclose the $20,000 stash at her residence in California or the fact that she had withdrawn $100,000 from a bank account. Whether or not Jiau is ultimately convicted, she appears to be guilty of being unhelpful, at the very least.

UPDATE - 10Mar2011

Jiau, along with former SAC Capital Advisors portfolio manager Donald Longueuil, have entered new not guilty pleas in Manhattan federal court. New charges against Jiau accuse her of tipping off former SAC manager Noah Freeman and another, as yet unidentified hedge fund manager. The unidentified individual is said to be Samir Barai, of Barai Capital Management, who was also charged in the case. Freeman has pleaded guilty and is turning evidence against other defendants.


Eric Bank, Freelance Writer