<p>Former analyst Jason Pflaum also testified Tuesday in federal court in Manhattan that he destroyed data his firm received from so- called expert networkers after Galleon Group hedge fund co-founder Raj Rajaratnam was arrested on insider trading charges.<br /><br />He was testifying at the trial of Winifred Jiau, 43, the former Primary Global Research LLC consultant who is charged with illegally passing tips about Nvidia Corp. and Marvell Technology Group Ltd. to hedge fund managers, including Pflaum's former boss, Barai. Asked by Jiau's lawyer, Joanna Hendon, what caused him to delete the files, Pflaum said: <br /><br />"The context was the Galleon case."<br /><br />"There was some discussion internally post-Galleon. There was more sensitivity to over-the-line business. More of a concern internally of who we could be talking to that was over the line."<br /><br />Asked if Barai was concerned that the US was investigating his firm, Pflaum said his boss wasn't worried after Rajaratnam and five others were arrested in October 2009.<br /><br />"The gist of the conversation was 'let's clean up some of our contacts that are questionable,'" Pflaum said. "I don't think there was any major concern. They just wanted to make sure I got rid of them."<br /><br />Barai pleaded guilty on May 28 to conspiracy to commit securities and wire fraud, as well as to charges of wire fraud and obstruction. Pflaum testified he decided to secretly cooperate with the US after Federal Bureau of Investigation agents approached him in October 2010. He continued to work for Barai until he pleaded guilty in January and testified he wore a wire during this period.<br /><br />Assistant US Attorney David Leibowitz asked Pflaum to rank for the jury the level of providers of inside information, including Jiau, who gave data about companies to Barai Capital.<br /><br />"On a relative basis, Winnie was at the top," Pflaum said. The other eight people he mentioned ranked below her in accuracy and detail.</p>
<p>Former analyst Jason Pflaum also testified Tuesday in federal court in Manhattan that he destroyed data his firm received from so- called expert networkers after Galleon Group hedge fund co-founder Raj Rajaratnam was arrested on insider trading charges.<br /><br />He was testifying at the trial of Winifred Jiau, 43, the former Primary Global Research LLC consultant who is charged with illegally passing tips about Nvidia Corp. and Marvell Technology Group Ltd. to hedge fund managers, including Pflaum's former boss, Barai. Asked by Jiau's lawyer, Joanna Hendon, what caused him to delete the files, Pflaum said: <br /><br />"The context was the Galleon case."<br /><br />"There was some discussion internally post-Galleon. There was more sensitivity to over-the-line business. More of a concern internally of who we could be talking to that was over the line."<br /><br />Asked if Barai was concerned that the US was investigating his firm, Pflaum said his boss wasn't worried after Rajaratnam and five others were arrested in October 2009.<br /><br />"The gist of the conversation was 'let's clean up some of our contacts that are questionable,'" Pflaum said. "I don't think there was any major concern. They just wanted to make sure I got rid of them."<br /><br />Barai pleaded guilty on May 28 to conspiracy to commit securities and wire fraud, as well as to charges of wire fraud and obstruction. Pflaum testified he decided to secretly cooperate with the US after Federal Bureau of Investigation agents approached him in October 2010. He continued to work for Barai until he pleaded guilty in January and testified he wore a wire during this period.<br /><br />Assistant US Attorney David Leibowitz asked Pflaum to rank for the jury the level of providers of inside information, including Jiau, who gave data about companies to Barai Capital.<br /><br />"On a relative basis, Winnie was at the top," Pflaum said. The other eight people he mentioned ranked below her in accuracy and detail.</p>