Former Apple supplier exec indicted for insider trading
updated 09:55 am EST, Fri February 4, 2011
Shimoon leaked info on iPhone, iPad
Walter Shimoon -- formerly a senior director of business development at Apple supplier Flextronics -- has been indicted along with five others on insider trading charges, says the Associated Press. Shimoon was initially caught through a federal sweep aimed at expert networking firms, in particular Primary Global Research. Such companies charge a price for getting investors in touch with analysts and other experts.
The Securities and Exchange Commission is leveling civil charges against the six defendants, who have already been named in criminal cases as well. Together the group is accused of making about $6 million in illegal money based on passing guarded corporate information to the likes of hedge fund investors. Some of the victim companies include Apple, AMD and Dell; in addition to Shimoon, the other defendants are Mark Anthony Longoria, Daniel DeVore, Winifred Jiau, Bob Nguyen and James Fleishman. Fleishman has been newly indicted on criminal wire and securities fraud charges, but his lawyer intends to plead innocence.
In 2009 Shimoon is believed to have leaked secrets about the iPad and iPhone 4, when both products were still months away from public unveiling. Regarding the iPhone 4 he let slip that it would have a VGA forward-facing camera and a 5 megapixel rear unit, information he only knew because Flextronics was involved in producing one of the components. About the iPad he mentioned that it was being developed with the codename "K48," and that it would lack a camera.
Shimoon and the other defendants will be required to pay fines and restitution if found culpable. Longoria, DeVore and Shimoon may further be barred from becoming officers or directors at any public company.
