Not if you've been following The Daily Caveat for any length of time...  This investigation has been in the works for quite some time and some familiar names, like Gerson Lehrman, have recently re-emerged.

The early heat had come from the NY AG's office, which sent out subpoenas back in 2007 and there was a brief little mention of a parallel Federal probe.  That shoe, it seems has well and truly dropped.

Labels: expert networks, Gerson Lehrman Group, insider trading

Former NBC Universal Treasurer, Victor Jung has been indicted on two counts of wire fraud relating to allegations that the 12 year veteran of NBC (the guy's only 34...did he start out in the Page program?) nearly $900,000 from NBC's parent company, General Electric.

Jung started out with GE as a financial analyst after graduating from Haverford College in 1994 working, ironically, on GE internal financial investigations. He rose to Vice President of Cash Management and just last year was named to the position of Treasurer.

In November 2005 Jung supposedly created his own company on the sly, NBCU Media Productions. Then he made two wire transfers from GE company account to his own entity, which had been named with the intent to masquerade as a real company subsidiary, NBC Media Production.

Needless to say, someone noticed the funds went missing. Also noticeable: Jung's lifestyle took a lavish upswing, with private flights for he and guests to Miami, Antigua, and the Turks and Caicos Islands as well as lavish food, drink and gifts and - oh the cliche - a house in the Hamptons.

Jung submitted a not guilty plea on two counts of wire faud has been released on bond. He is facing up to 20 years and a $250,000 fine.

-- MDT

Labels: embezzlement, Gerson Lehrman Group, NBC, Victor Jung, wire fraud

Subpoenas have gone out from the NY Attorney General's Office to two prominent research firms servicing investment managers, Gerson Lehrman Group and Vista Research (a unit of McGraw-Hill). At issue is whether Gerson Lehrman or Vista may have discussed material non-public information with their interviewees in violation of insider trading laws.

Interestingly, the SEC also has a parallel investigation under way regarding whether several hedge funds may have also benefited from the acquisition of similar non-public information. That too will bear close watching.

-- MDT

Labels: Gerson Lehrman Group, insider trading, Vista Research