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Primary Global's Telecom "Expert" Don Chu First Arrest In Insider Trading Probe
The first arrest in the insider trading probe is Primary Global's Don Chu according to a complaint filed by the State Attorney's office. Per his biography, Chu "is PGR’s bridge to Asia experts and data sources. Don was a
25-year veteran in Data Communications Industry. He was with Bell Labs
for more than 10+ years in data, wireless, and telecommunications arena.
He has great view of technologies sector in Taiwan and China from fab,
fabless through OEM/ODM players. Don intimately understands the
wireless broadband communications industry, and has deep connections and
relationships in the technology industry. Finally, Don is just a fun
person to travel with on the highways and byways of Taiwan." Chu promises to be an even funnier bunk mate in minimum security prison, unless of course, he rats out all of his co-conspirators. Which he most likely will. Oddly enough, Chu is not in the biotech space, which is the bulk of the focus of the investigation seems to focus. We expect many more arrests imminently.
From MarketWatch:
Chu has been charged with conspiring to promote the firm's consultation
services by arranging for insiders at publicly-traded companies to
provide inside information to the firm's hedge fund clients for the
purpose of executing profitable securities transactions, they said.
Chu is implicated in leaking insider information to ex-Galleon and SAC trader Richard Choo-Beng Lee. Here is how Lee would make money using Expert Networks:
In late 2008 and early 2009, Lee’s hedge fund was a client of the Firm. Lee’s hedge fund’s practice was to have its employees calla Firm consultant before the consultant’s company was expected to release its quarterly earnings, in part to obtain Inside Information. Lee’s hedge fund paid the Firm through soft dollars, which are payments that occur when a Firm client causes its trading activity to be directed through the Firm's designated broker-dealer, so that commissions or fees from the executed trading activity of the client satisfy the payment for the Firm's services.
One wonders what the uber-encrypted method of communication recommended by Chu was:
Later, CHU explained a method of electronic communication to Lee that CHU believed could not be detected bylaw enforcement. Referring to that particular method, CHU stated, "There’s no, no, no, no copy. If you, it’s better than personal email. . . . There’s no copy saved in the server. Even personal email, there is a copy. . . . So, [UI] just talk. Do,don’t, don’t put it down in writing. Dangerous."
Full press release from Preet Bharara, United States Attorney - Southern District of New York
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Still think we should keep this peaceful?
http://www.cnbc.com/id/40353686
No I dont.
Goldman sacks under investigation
http://www.businessinsider.com/feds-are-apparently-investigating-two-trades-goldman-sachs-made-2010-11
I think they left some zeros off the number of trades.
No doubt this investigation will finally lead back to Waddell and Reed.
NFW
I am hearing some singing off in the distance
Steve Rattner was on Charlie Rose last night...he doesn't seem to get it this time is different...he kept asking why Cuomo is not settling with me like the others before...and he will fight Cuomo...yeah right
i wish i could place a bet on his head
Yeah, I caught that. The rat was squirming and whining about how he has been treated but WTF was this doing on the CR show? A whole show dedicated to some whiny brat rat?
PBS needs a kick in the pants for airing that content.
A Message for Stevie "The Rat" Rattner
Life's a bitch when you're a bitch... bitchez...
Now, as for that lame ass lap dog Rose...
Sorry traders if you can't stay up 24 hours a day you are not fairing so well. 2/3 of the move in the index happens before the cash market opens. If you wait for the cash open to trade you are left with crumbs. This is a sure sign that insiders have the economic data before it's released. It's just that simple. Someone leaks this to Goldman Sachs they then front run the suckers, another sure sign of this rigged market. Free markets are history.
Well thats basically the way its been since DOW 6,500, when the markets became 100% manipulated...all market moves happen pre-market, where (except for a few rare days) the markets opened up or down and stayed sideways all day.
The other side of the coin is that if we trade with the assumption that markets are rigged and econ numbers biased to the upside, a strategy of buying at certain times overnight with tight stops to sell on the open or by noon should have a positive expectation.
Yes, manipulated market = predictable market
Predictable market = abret opportunities.
Or if you bought yesterday at 12:45 again, near the lows, you'd be running with the bulls today. Another easy call. When the market trades on news, it forgets the bad stuff quickly.
As big a deal as you want to make about Durables, it wasn't a "disaster" and it's a very volatile number month to month.
The number to focus on is claims - wow! That's a great report no matter how you look at it.
Thumbs up, market is so manipulated we can use to our advantage. Might as well ride this one.
At least you've picked up on the silliness of the market and are able to trade these hugely telegraphed moves. Most here would rather ignore any shred of good news and whine about the market not collapsing.
Trading in this manipulated market makes you complicit.. I hope the FBI traceroutes your IP Wanger... You deserve to have that flag removed and your citizenship revoked.
fuck you.
Thanks for being a shining example of the ill-informed poster. Why would the FBI care about me? Because I make money in the markets? Up or down, I trade where the market goes. For this I should be arrested?
Sorry but your post belongs at Yahoo not here.
Well here's a flash for ya, Harry. My momentum indicator just turned negative yesterday on the Dow for the first time since Sept 1. Today may actually be a good short entry.
well... I'm informed enough to know that any shred of "good news" is all manipulation.. I'll take back the fuck you. Why don't you hang that flag upside down? Or, are you doing god's work?
You should change your name to "Captain Hindsight".
If you bought ANYTHING at the lows, you would BY DEFINITION be running with the bulls.
I've posted my positions here and my perspective on the market. If you have read any of that, you will realize where I bought AAPL and PCLN and that I own a lot of PMs. There's no "hindsight" just common sense, which seems to be lacking in large quantities here.
just to make sure im clear - the durable goods number is "volatile" so ignore that, but instead focus on the claims number in a holiday shortened week?
there's no other angle to your argument right, its that dumb?
Don Ching Trang Chu
wtf.
Reading that name, I assume a joke follows.
Cousin to Lee Ho Fook.
Aaauuuuu!!
Oddly enough, Chu is not in the biotech space, which is the bulk of the focus of the investigation seems to focus
Good tell tale
I wonder if this is the back story.
Analysts hired by these hedge funds are generally Chinese/Indian/foreign because they are perceived as 'smarter' and work for less. But they are educated outside the US and don't have as much training/schooling in US laws. So they get chatty on their telephone calls. Which is an absolute no-no.
So the FBI busts will have a very high rate of international analysts?
cheap, deniable and expendable.
Here it is
Let's get Sinfull fruit
http://modmyi.com/forums/iphone-news/738026-apple-analysts-under-investigation-about-insider-info.html
What...they aren't targeting Martha Stewart?
Saw this on dealbreaker:
Understandable, if it is a silver spoon.
I was thinking more along the lines of dropping a hammer down a metal chimney, but yours works too
Don Chu is now known as Suk Sum Poo
Preet, get over your obsequious colonial serf mentality and get us some fat white rats...
... as the Titanic slowly settles lower in the water, there is growing panic in the lower quarters as the steerage passengers scramble to reach the safety of the upper decks; all the while first class passengers pass the time drinking, gaming and chatting in the parlors and promenades.
Read the historical records and watched the movies; didn't end well for most.
Don'tChu all have a call from Deep Shah on line 4?
Personally, if it's not GS,JPM,HSBC,CITI or BofA in cuffs, it's all fluff.
He sure is the worst criminal of this crisis...
I have come to realize that Zerohedge equals ZERO MONEY. All the NOISE in this blog will make you ZERO dollars really.
Talk about the US Dollar crashing, where is it now?
Talk about AAPL and Tech bubble? How high are these stocks today?
Talk about the end for the banks? Like this country will run without them. Zerohedge is naive.
Talk about Disney and Net Apps crashing right after announcing? Look at them now.
Bottom line, thanks for the effort to point the economic issues we face. But these issues DO NOT translate into a wipe out of Western Societies economic system.
Western Corporate innovations are just too strong and the world development depends heavily on it. Who will replace them? BRIC companies....not in our living years.
Yes, the market will correct....doesn't it always? It's natural.
"The only thing we have to fear is fear itself"
I liked this one the best
I've never seen anyone recommend shorting AAPL or buying puts in it. It is a bubble and we'll see it pop along with most of the other Fed-created toys. Most of us have long term horizons and aren't looking to make short term paper gains but instead preserve capital and truly hedge our futures.
We are simply in another period where systematic socioeconomic defaults are forcing restructuring of socioeconomic systems. Historically, being the most advanced culture does not ensure guaranteed transitions under any government or monetary system yet devised by man.
Have you found your place in the developing 21st century ant-hill?
There are a few posters here you can follow to make some money. A lot of what is posted here is good, useful information. But there is a lot of sensational "end of world" posts to get through to find the gems.
Yes, trading insights can result in immediate monetary gain, if that is your purpose.
Some wonder as to the benefit of speculation at the expense of other's purpose.
The Amish living next door, do not impede your pursuits and strive to live a life that brings no harm to others; but what you do may affect them nonetheless.
Are they less important than those in a constant frenzy to maximize personal wealth?
Is so, upon what reasoning are you not less important to some others?
I just trade stocks and sell discretionary goods. I'm one of the few here that argue to treat all people regardless of wealth or position the same. I argues how UE benefits are needed and to take them away is akin to a death sentence in some cases on your fellow Americans. Barking up the wrong tree here if you think I put more importance on some lives than others.
Hey D-Flux, awesome Avaatar gif and handle.
And if I may pick a thread from your post and run with it...
A look at the last 500 years or more of world history will show that many more red,black, brown, yellow and sundry other hued peoples died at the hands or the wits of the white man than the other way around. In fact, while I can present no numbers, I'm sure the ratio would be staggering.
If you throw in direct consequences of white on colour action (Buffalo Slaughter, Forced Language conversion, forced religious conversion, divide and rule, small pox in blankets, the grind-you-into-the-dust-rial revolution and all it's associated horrors, chemical/literal/figurative/cultural pollution.....the list is long and odorous/onerous), it becomes staggeringly clear that the white population (in proportion) has grown all out of proportion to it's original planetary carrying capacity.
We always speak of absolute numbers in population statistics, whereas the real numbers that matter are relative.
Now a population of any space is supported by a certain natural resource smorgasboard, suited to because it sprang from the local, could naturally support a certain limited population.
Which skin colour, if you could be so objective, has grown all out of proportion to it's available resource base?
Of course and without a doubt, the world's white population.
To deny that even momentarily, is to deny an obvious, slap-in-your-face reality.
May I suggest this site for some in-sight...
http://www.globalchange.umich.edu/globalchange2/current/lectures/human_p...
But even there, you cannot see the dis-proportionate rise of the white population as a percentage of world population, especially accounting for the fact of their original, natural environment's Carrying Capacity, in the era post the industrial revolution.
The spread of the white spawn has truly been a curse on the rest of humanity.
No metric over the last 500 years (specifically from just before the start of the Industrial Revolution) will show any material improvement in the "Quality" of human existence while it will show, through the proof of quantity (Live this many "more" years, no accounting for the quality of that medication dependent life-extension as an egregious and oft-quoted example, the rise of "education" and the ability to do complex mathematics (meaningless to the vast majority of people who "study it") and transact in english, that vastly fallen spawn of Latin as another) that life somehow got larger or bigger, but surely not better.
In this tipping point period of human history, I think we will find the whip-lash of un-intended but also in-evitable consequences visit upon the white population of the world. I make this statement with no rancour, just a vision. The wheel turns relentlessly, eating AAPLS and HARRY's along the way.
Look around you and think who will be better positioned to handle a real down-turn? In a white nation like the US, seen the coloured gangs? The physically hard working Mexicans? All scrambling along the line you (the larger white populace) have coming screaming at your around the next (or next to next) curve. The same can be said for the UK, France, Denmark, Australia.... You've been softened for a massive die-off, all the while believing National Geographic's graphic telling of starving africans and starving, pot-bellied Indian's and Bangladeshis. You've been sold a fantasy.
Nope. Sorry, when things get tight, people who have been living tightly will survive and thrive. Softened, weak people cannot grow back-bones overnight. It has taken many generations to make you who you are today.
I suggest you read the above with a thought to what "counts".
Such irony, that the only person who can safely interact with the industrial age's crowning achievement, the mobile phone, machine intelligence as a must have accessory to daily life...while at the same time driving a mode of transport is a bullock-cart driver.
The rest of us are just statistically safe.
ORI
http://aadivaahan.wordpress.com/2010/06/09/an-older-piece-pertinent/
Well if you use ZH as a trading website you are doing it wrong.
Structural macroeconomic problems can take a long time to fully manifest themselves to the point in which a true crisis develops. This time period is extended dramatically when you have a large group of powerful actors colluding with one another to extend the current imbalances for as long as they are able.
Why didn't someone leak that contretemp between the Koreas. Damn manipulators, holding out!
contretemps
It is great to see they are nailing the evil king pin!
At least serve up Gross or Blankfein, maybe on a silver platter NOT from JPM?
Don't get your hopes up. They are just frying small sacrificial fish.
Funny the first person to be arrested is a Chinese national. This smells like tit for tat after a couple of missiles flash up over the Pacific and then the Atlantic. Retrobution for the Chinese step child NK and their war games? I wonder if the Chinese will start dumping Treasuries in the near term?
They got him before he fled the country. You can bet a bunch more people are having their passports flagged tonight.
Target ALLLLL those evil chinks and round them up. We know who we love to hate. It's the nasty chinks I tell you, the chinks!!!!! Or is he a gook? Or a Jap? Allllll those evil slant eyes, go get em. Intern them. The slant eye is da new joooooooo! Or is dat da ole' joooooo?
[falls to ground frothing at the mouth, twitching and spasming, head turning 360 degrees]
Let China fark you! Let China fark you!
Are you with me Dr. Chu? Are you really just a shadow of the man that I once knew? Are you crazy are you high? Or just an ordinary guy? Are you with me doctor? Can you hear me doctor?
Tonight when I chase the dragon ...
Squeal like a pig! [/Deliverance]
Another dog and pony show is what this nonsense is. If you think they are "catching" these small time guys out of some sense of enforcing the "rule of law" (whatever the hell that means nowadays), you are sadly mistaken. The only reason these corrupt government assholes and goons are getting off their fat lazy butts and even bothering with arresting someone is because these small-timers had the temerity to encroach the turf reserved solely for looting and pillaging by the big guys.
Good to see you out and about. Have you participated in the Crash JP Morgan campaign? The PMs have treated me well. ;-D You know I loves me Gekko! I'm learning about silver and have become convinced that is almost guaranteed to be the investment of the next 20 years. I am about 20% Silver in my PM holdings but wondering if I should up that and ignore gold for a while. Any thoughts?
If the financial fraudsters, FEDers, regulaters et al, who fail to perform their official duties, are not prosecuted, then the only workable conclusion is that they are somehow joined at the hip with the ultimate controllers of justice.
I.e., consistent appearance of immunity from justice equates with being a vital part of some overriding plan, knowingly or not.
There is one word that covers both Don Chu and Richard Choo-Beng Lee. That word is TONG. And the indictments should be RICO.
You know, I skipped over this story today...but had to come back and post...cause it all seems so clear now. Yeah, blame some hapless Chinese guy! LOL!
Don't pay attention to the Bernank/Blankfein/Dimon behind the curtain. Grab that Asian dude.
Too funny.
Quit pulling out the Race Card. Chu is only the first of many.
Yeah, I'm a racist. Classic Marxist kind of remark. You missed my point entirely. Way to go...
agreed, good point
gives whole new meaning to the term "chinese wall"