Harvard B School Grad Sam Barai’s Alleged Source For Inside Info Indicted Today

Harvard Business School Alum Sam Barai, who managed the hedge fund Barai Capital Management until he was arrested, had at least one source for his inside information, who was today indicted on insider trading charges. Winifred Jiau (jow), who worked for Primary Global research has been charged with conspiracy and securities fraud. Ms. Jiau had been in prison without bail as the government successfully argued that she was a risk to flee to her native Taiwan, but today a judge set bail in the amount of $500,000 and said if she meets bail she could live at home with an electronic monitoring device. She is a U.S. citizen who was arrested last year. In a complaint filed last month, Jiau was alleged to have provided inside information about publicly traded companies to hedge fund managers. Some of her conversations with individuals were recorded. Barai has been identified as being a recipient of some information from Ms. Jiau. A cooperating witness was Jason Pflaum a 38 year old technology analyst at Barai Capital. The complaint says that the analyst who worked at Barai Capital has entered a guilty plea on charges of conspiracy and securities fraud and was cooperating with the government investigation. Ms. Jiau learned that some of her calls to Barai Capital were recorded.