Ex-Marvell accountant arrested for insider trading

NEW YORK |
Thu Aug 11, 2011 1:00am IST

NEW YORK (Reuters) – Former Marvell Technology Group Ltd accountant Stanley Ng was arrested on Wednesday as part of the government’s probe into insider trading, an FBI spokesman said.

Ng, 42, was charged with conspiracy to commit securities fraud by federal prosecutors in Manhattan, according to a complaint unsealed on Wednesday.

The defendant was arrested at his home in Cupertino, California, the FBI spokesman said. He was released on bail earlier on Wednesday. It was not immediately clear whether he had retained an attorney.

Ng is the 50th person charged as part of the U.S. government’s wide-ranging probe of insider trading, which had been unveiled in October 2009.

He was previously identified in Manhattan court proceedings as being part of a group of people sharing secret information at expert networking firms and hedge funds.

His name surfaced in the recent trial of Winifred Jiau, a former consultant for expert networking firm Primary Global Research, whom a jury convicted on June 20 on insider trading charges.

The complaint said Ng on multiple occasions in 2008 tipped the Taiwanese-born Jiau on quarterly financial results at Marvell.

Jiau would in turn tip hedge funds with the information she had obtained, prosecutors said.

“Stanley Ng was the tipper, providing valuable and detailed information to Jiau, in violation of his confidentiality agreement,” said FBI assistant director in charge Janice Fedarcyk.

The case is U.S. v. Ng, U.S. District Court, Southern District of New York, No. 11-mj-02096.

(Reporting by Basil Katz; Editing by Steve Orlofsky and Gerald E. McCormick)

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