NEW YORK (
) -- The U.S. Attorney's office has made an arrest in its insider trading sweep, which has been picking up steam in recent days, according to a press release from the U.S. Attorney for the Southern District of New York.
The man placed under arrest, Don Chu, 56, worked for an "expert network" firm that provided research and industry expertise to hedge funds.
Chu established a relationship with a man named Richard Choo-Beng Lee, who worked for a hedge fund. Together, the men discussed how Lee could contact an employee at
to get "top line revenues" ahead of their official release, the complaint alleges. Other publicly-listed companies named in a complaint accompanying the release were
Lee pleaded guilty to conspiracy and securities fraud and has been cooperating with the government since roughly April 2009, according to court documents.
Though the sweep has been going on for some three years, focusing mostly on hedge fund
, it has lately broadened to include several other firms, including
, though none of these firms have been charged with wrongdoing so far.
Written by Dan Freed in New York
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