Insider Trading Sweep Touches Tech Firms
NEW YORK. (
) -- Tech firms
Sierra Wireless
(SWIR)
,
Broadcom
undefined
and
Atheros Communications
(ATHR)
have all been mentioned in a complaint filed by the government as part of its recent
.
The U.S. Attorney's office has already arrested "Don Chu," who worked at an "expert network" firm providing research and industry expertise to hedge funds, for alleged insider trading. The complaint mentions an unnamed Sierra Wireless employee as one of Chu's contacts.
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The wireless specialist says that the employee cited in court documents does not hold a key role at the firm. "The Sierra Wireless employee referred to in this complaint is not a director or officer of Sierra Wireless," the firm said in a statement released Wednesday. "Sierra Wireless takes these allegations very seriously and intends to cooperate fully with the United States Attorney in this matter."
Chipmaker Broadcom and Atheros Communications, however, also feature in the complaint.
Court documents say that 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 Broadcom to get "top line revenues" ahead of their official release, the complaint alleges.
Broadcom has not yet responded to
TheStreet's
request for comment on this story.
Chu also allegedly provided inside information on Atheros to Lee. "If requested, Atheros will cooperate fully in any government investigation," said an Atheros spokesman, in an email to
TheStreet
. "At this time, we have no further comment."
Shares of Sierra Wireless, Broadcom and Atheros largely shrugged off the insider trading probe on Wednesday. Sierra Wireless shares rose 9 cents, or 0.8%, to close at $11.37, while Broadcom climbed $1.32, or 3.01%, to $45.24. Atheros' stock closed up $1.02, or 3.13%, at $33.66.
Chu's arrest marks the latest development in the government's three-year insider trading sweep. According to court documents, Lee pleaded guilty to conspiracy and securities fraud and has been cooperating with the government since roughly April 2009.
--Written by James Rogers in New York.
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