Ex-employee of Marvell faces U.S. fraud charges

Published 5:00 am Thursday, August 11, 2011

Federal prosecutors announced charges Wednesday against a former employee at the Marvell Technology Group, accusing him of participating in an insider-trading scheme that funneled corporate secrets to hedge fund traders.

The former employee, Stanley Ng, was arrested Wednesday at his home in Cupertino, Calif. He was charged with one count of conspiring to commit securities fraud.

“Stanley Ng and his co-conspirators traded inside information as casually as some people trade baseball cards,” Preet Bharara, the U.S. attorney for Manhattan, said in a statement. “Like so many others recently, he will now be held to account in a court of law.”

A lawyer for Ng did not immediately return a request for comment. Marvell has not been accused in any wrongdoing.

The arrest is the latest in a sweeping federal crackdown on insider trading. Since August 2009, the U.S. attorney in Manhattan has charged 52 people with insider-trading crimes. Of those, 48 have either pleaded guilty or been convicted by a jury.