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
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

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9 Comments

1. medalaster1 unregistered

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

2. iKingTrust

Posts: 716; Member since: Jul 27, 2011

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

7. loilol unregistered

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

3. remixfa

Posts: 14605; Member since: Dec 19, 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.

8. iKingTrust

Posts: 716; Member since: Jul 27, 2011

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

4. cheetah2k

Posts: 2185; Member since: Jan 16, 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....

9. iKingTrust

Posts: 716; Member since: Jul 27, 2011

June?

5. jroc74

Posts: 6023; Member since: Dec 30, 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.

6. darth8ball

Posts: 520; Member since: Aug 02, 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.

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