| NEW YORK
NEW YORK Dec 5 A former Dell Inc
supply manager who cooperated with government insider trading
investigations, including a probe of a portfolio manager at SAC
Capital Advisors, avoided prison on Thursday as a result of his
Daniel DeVore, 49, pleaded guilty in 2010 to conspiracy to
commit securities fraud and wire fraud for passing confidential
information about Dell and its suppliers.
U.S. District Judge Jed Rakoff in Manhattan sentenced DeVore
to time served plus two years of supervised release. He imposed
no fine but ordered DeVore to forfeit $145,750.
Rakoff noted that many other defendants who provided "vital
assistance" and displayed remorse had similarly avoided prison
in this and related cases.
"It seems to me all of that applies totally to Mr. DeVore
and warrants a sentence not involving incarceration," Rakoff
Prosecutors had backed the reduced sentence, which fell
below the 18 to 21 months recommended under federal sentencing
DeVore, while he was working at Dell, also moonlighted as a
consultant at Primary Global Research, an expert networking firm
that became the focus of a wide crackdown by Manhattan
prosecutors on insider trading.
Expert networking firms like Primary Global pair industry
experts with investors and analysts.
At his guilty plea in December 2010, DeVore admitted that
from 2007 through August 2010 he divulged to Primary Global
clients confidential information about Dell and two suppliers,
Seagate Technology PLC and Western Digital Corp.
Among those who received information from DeVore were two
analysts between 2008 and 2009 who went on to share the
information with friends, including Jon Horvath, an analyst at
Steven A. Cohen's SAC Capital hedge fund, prosecutors said in a
filing on Wednesday.
Horvath has pleaded guilty and is testifying in the trial of
SAC Capital portfolio manager Michael Steinberg.
Steinberg, 41, is charged with five counts of securities
fraud and conspiracy to commit securities fraud on allegations
he traded in Dell and Nvidia Corp in 2008 and 2009 based on
While DeVore had been listed as a potential witness in
Steinberg's trial, Antonia Apps, the assistant U.S. attorney
prosecuting the case, wrote in a court filing on Wednesday that
he was now unlikely to be called.
DeVore had previously testified against another Primary
Global employee, former sales manager James Fleishman, who was
found guilty on conspiracy charges and sentenced to 2-1/2 years
in prison in 2011.
DeVore's own sentence will help close out another of the 76
cases of individuals convicted since October 2009 as part of the
wave of insider trading cases prosecutors have pursued in New
Those included at least eight former consultants and
employees at Primary Global, which filed for Chapter 7
bankruptcy in 2012.
In their filing on Wednesday, prosecutors said DeVore had
been helpful in other investigations by the office of Manhattan
U.S. Attorney Preet Bharara and the U.S. Securities and Exchange
Among the ongoing investigations listed was one of Phani
Saripella, the former chief operating officer at Primary Global,
against whom DeVore "provided incriminating evidence," the
That portion of the filing was redacted, but the text could
be read after it was copied into a word-processing program.
Saripella has not been charged to date. Neither Priya
Chaudhry, a lawyer for Saripella, nor representatives for
Bharara responded to requests for comment.
The case is U.S. v. DeVore, U.S. District Court for the
Southern District of New York, No. 10-01248.