Primary Global Research

Primary Global Research (PGR) was an expert network based in Mountain View, California. From 2008 to 2010, PGR received praise for its rapid growth and innovative approach to sourcing experts.

In February 2011, the SEC filed a civil complaint - later amended - charging PGR employees, consultants, and hedge fund clients with insider trading, as part of a broader federal investigation into expert networks led by the US Attorney's Office for the Southern District of New York. Prosecutors alleged that PGR consultants, several of whom were current employees at public companies, shared material nonpublic information with PGR clients, including hedge funds, in violation of PGR's own stated compliance policies. The SEC's complaint alleged the scheme netted more than $30 million from trades based on confidential information about AMD, Seagate Technology, Western Digital, Fairchild Semiconductor, and Marvell Technology. Individuals connected to PGR were separately tied, in related reporting on the broader industry-wide investigation, to confidential information involving NVIDIA and other technology companies.

Over the following two years, several individuals affiliated with PGR - including employees, consultants, and clients - pleaded guilty or were convicted on charges including wire fraud, conspiracy, and securities fraud, with sentencing continuing into 2013. PGR's then-CEO was named in court filings as having been implicated in aspects of the scheme, but was not personally charged.

In 2011, PGR announced it had closed its offices, while reportedly still intending to remain in business in some form. The company's own website was last meaningfully updated in 2010.

This case is widely regarded as a landmark moment for the expert network industry, prompting many networks to significantly tighten compliance policies and expert-vetting processes in the years that followed.

FAQ

Is Primary Global Research still active? No. PGR closed its offices in 2011 following a major federal insider-trading investigation, and no current website or activity exists.

What did Primary Global Research specialize in? Primary Global Research specialized in connecting institutional investors, including hedge funds, with industry experts and current employees of public companies for research consultations, before its involvement in a major insider-trading case.

What actually happened in the PGR insider-trading case? In 2010-2011, the SEC and US federal prosecutors charged several individuals connected to PGR - employees, consultants, and hedge fund clients - with insider trading, alleging they shared and traded on confidential company information. Multiple individuals pleaded guilty or were convicted over the following two years. PGR was not shown to have entered a guilty plea, though the case led directly to the firm closing its offices in 2011.

Want to learn more about how compliance is handled by Inex One? Read more here.