The Manhattan US Attorneys' office just announced the arrest of a 56 year old tech sector "expert network" insider. The investigation is continuing, noted Preet Bharara, the U.S. Attorney for the Southern District of New York. So, it is safe to assume that it is simply a matter of time, now, before a similar health-care (or pharma, more specifically) expert networker is arrested, in the seemingly ever-widening probe. Per WSJ MarketWatch's reporting
. . . .Authorities said Don Ching Trang Chu, known as Don Chu, was arrested Wednesday morning, at his Somerset, New Jersey home, on conspiracy charges in connection with his employment at an “expert-networking” firm. . . .
Chu has been charged with conspiring to promote the firm’s consulting services by arranging for insiders at publicly traded companies to provide nonpublic information to the firm’s hedge-fund clients for the purpose of executing profitable securities transactions, according to a joint statement by the Justice Department and the Federal Bureau of Investigation.Chu was scheduled to depart for Taiwan on Nov. 28. . . .
He faces one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud and fraud in connection with securities, the authorities added.
Count one carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Count two carries a maximum potential penalty of 25 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. . . .
Stay tuned -- decidedly nervous turkey carvers will abound, tomorrow -- in the nation's medicine chest, I bet.
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