Bloomberg News

Expert-Networking Executive Loses Bid for New Fraud Trial

December 07, 2011

(Updates with sentencing date in sixth paragraph.)

Dec. 6 (Bloomberg) -- Former Primary Global Research LLC executive James Fleishman lost a bid to have a conviction for his role in an insider-trading conspiracy thrown out by a federal judge.

U.S. District Judge Jed Rakoff in Manhattan also rejected Fleishman’s request for a new trial. Rakoff denied both requests in a one-page order made public today.

Fleishman, of Santa Clara, California, had argued that prosecutors failed to establish that any of his alleged contributions to the conspiracy occurred in New York. He had also said he was improperly barred from taking the stand in his own defense when he was told that before he could be questioned he had to turn over his personal diaries to prosecutors

Fleishman was convicted in September of two separate conspiracy charges for what the U.S. said was a scheme to obtain and pass confidential information from technology company employees who moonlighted as consultants for Mountain View, California-based Primary Global, a so-called expert-networking firm.

The nonpublic information went to fund managers who paid Primary Global for consultation calls, prosecutors said.

Fleishman’s sentencing is set for Dec. 21. He faces as long as 20 years in prison on the most serious count, according to prosecutors.

Ethan Balogh, a lawyer for Fleishman, didn’t immediately return a voice-mail message left at his office seeking comment.

The case is U.S. v. Nguyen, 11-cr-32, U.S. District Court, Southern District of New York (Manhattan).

--Editors: Andrew Dunn, Peter Blumberg

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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