x PhoneArena is looking for new authors! To view all available positions, click here.
  • Home
  • News
  • Ex-Samsung Electronics manager pleads guilty in insider trading probe with Apple iPad components

Ex-Samsung Electronics manager pleads guilty in insider trading probe with Apple iPad components

Posted: , by Daniel P.

Tags:

Ex-Samsung Electronics manager pleads guilty in insider trading probe with Apple iPad components
A former employee of Samsung Electronics said he indeed supplied screen components shipping information to a hedge fund manager about the upcoming Apple iPad last year.

Samsung is making some of the screens and other gear for the first iPad, so Suk-Joo Hwang was lured by promises for flying models on a private jet during weekend trips to Iceland in exchange for insider info about Apple's upcoming disruption device. We kid, but Wall Street somehow got under the guy's skin, and after 14 years of humble work for Samsung Electronics USA, he was trapped by the necessity to install a granite countertop in his old kitchen.

The guy has been granted immunity from the New York prosecutor, in order to catch the bigger fish, Primary Global Research LLC (PGR) executive James Fleishman. He is running an expert network consulting firm in Mountain View, whose main activity has obviously been getting insider info from one source or another, and selling it to the highest bidder.

Suk-Joo Hwang worked as a consultant to PGR for six years, and received $38 000 total in compensation. He did make the usual disclosures during his lunch with Fleischman, like "please, just keep this for yourselves", and, in February 2010, when he got a promotion, he advised PGR he wants to stop consulting for them. The expert network firm, however, upped his hourly pay from $200 to $350, he couldn't resist the temptation, and stayed until last August. 

In October 2010 FBI agents approached him, and, after the initial denial, he traded his knowledge on PGR insider trading for immunity from prosecution. He was fired by Samsung in June this year, and the testimony continues today, so we'll keep our eyes peeled for any juicy info.

source: BusinessWeek

9 Comments
  • Options
    Close




posted on 15 Sep 2011, 06:14 2

1. medalaster1 (unregistered)


What the f**k did this truly happened????......If so now we know why apple is after Samsung with lawsuit.

posted on 15 Sep 2011, 07:08 4

2. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


It is all adding up. Wow but all these haters just see Apple as being the bad guy.

posted on 15 Sep 2011, 11:02 3

7. loilol (unregistered)


yea get ur information right before you post... good job lmao

posted on 15 Sep 2011, 07:09 3

3. remixfa (Posts: 13902; Member since: 19 Dec 2008)


this has nothing to do with the lawsuit. this is insider STOCK trading not parts/design trading. He was giving them inside info so they knew which companies to buy stocks in before anyone else did, which is illegal.

posted on 15 Sep 2011, 11:25

8. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


and would cause people to lose money and look bad riiiight??
....

posted on 15 Sep 2011, 08:18 4

4. cheetah2k (Posts: 737; Member since: 16 Jan 2011)


The actions of one, do not speak for the entire company. There's a reason why he's been an ex-employee of Samsung for quite some time....

posted on 15 Sep 2011, 11:26 1

9. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


June?

posted on 15 Sep 2011, 10:38

5. jroc74 (Posts: 3981; Member since: 30 Dec 2010)


Either way....I can see this article blowing up in minutes with fights all around...lol

Certain articles I try to stay out of, like the Android malware ones...this will be another one.

posted on 15 Sep 2011, 10:50

6. darth8ball (Posts: 519; Member since: 02 Aug 2011)


I agree with both remixfa and cheetah.
Also, with the crazy confidentiality agreements that Apple makes everyone and their mother sign to even wash the floor at Cupertino, Apple can go after the individual but not Samsung in this, the employee not the company.

Want to comment? Please login or register.

Latest stories