Insider trading investigation linked to iPad leaks leads to four arrests in the US
Three executives and one salesman for "an expert network firm" were charged with insider trading practices. One of the said executives, named as Walter Shimoon, is suspected for the Apple leaks as court papers report intercepted phone calls in which Shimoon, a senior director of business development at Flextronics, (a company that supplies Apple with adapters and other parts) revealed inside information about the then-unannounced iPad. According to the court papers, in an October 2009 telephone call, he said:
"At Apple you can get fired for saying K48 ... outside of a, you know, outside of a meeting that doesn't have K48 people in it. That's how crazy they are about it."
It's a fact that details about the iPad were heavily leaked prior to its release, so we guess he (and others) revealed a little bit more about the K48 project than the above quote. Since this investigation is ongoing, we can expect more information to pop up on the subject, so stay tuned.
1. Doakie (Posts: 1328; Member since: 06 May 2009)
Wait a second... No one seems alarmed that Apple/ Justice Dept has intercepted phone conversations about something as simple as a consumer product? Did Apple tap the lines st their suppliers companies or something? I understand corporate espionage is a real problem. But DAMN Apple is a scary company. First they go after Gizmodo about purchasing an item that was lost and found, then they send Apple campus security to the guys house. Then the whole foxconn security guard torture and suicides of the workers who lost / sold Apple beta products, now they're putting 4 people in jail for info leaks. I could see if they fired the people / companies and filled a civil suit against them for damages, but "insider trading" can get jail time. They're out of control. I can't believe people would by products from a monster company like that.
3. Doakie (Posts: 1328; Member since: 06 May 2009)
Wow there is so much more to this story in the Reuters article. Its not even really about Apple except that they happen to be one of the companies who were discussed in a different investigation on Hedge funds and paid tech consultants. Phone Arena did a horrible job reporting this story.
4. always bad info (unregistered)
@ DOAKIE-like they always do! (phone arena)
5. 530gemini (Posts: 2198; Member since: 09 Sep 2010)
They deserve to go to jail. They need to learn to keep their mouths shut. They're pretty much traitors in the business or double crossers that cannot be trusted.
6. smpdx (Posts: 127; Member since: 02 Nov 2010)
Its business though! Its not like they put anyones lives in danger. I can see them being fined and then fired. But jail? There has to be more to the story.
7. JemY (unregistered)
Good work .