Don Chu, the first expert network consultant to be arrested as part of the government's sweeping insider trading investigation, has pleaded guilty to insider trading, according to Bloomberg TV.
Chu, who worked for Primary Global Research (PGR) -- an expert network firm at the center of the trading scandal -- was going to plead not guilty earlier in the year.
Chu's alleged scheming involved promoting PGR's consultation services by arranging for insiders at publicly-traded companies to provide "material, nonpublic information to [the firm's] hedge fund clients."
The complaint against Chu documented his relationship with Richard Lee, the co-founder of Spherix Capital LLC and an SAC Capital alumnus, who already pleaded guilty and was cooperating with prosecutors in its probe of the Galleon hedge fund.
Meanwhile, Chu's Primary Global colleague, Wini Jiau, is fighting against federal prosecutors in her own insider trading case. She has pleaded not guilty. Yesterday, former SAC Capital manager Noah Freeman detailed how he provided gifts -- lobsters, iPhones and cheesecake vouchers -- for "perfect" tips to Jiau, who he had nicknamed "Poohster."
