Insider Trading Probe: Apple Info Divulged
Flextronics' response has been added to this story.
CUPERTINO, Calif. (
) -- Federal authorities, widening their
Thursday, allege that a former
Flextronics
(FLEX) - Get Report
employee divulged confidential sales forecasts and new product features for
Apple's
(AAPL) - Get Report
iPhone.
Walter Shimoon, one of a number of defendants identified by the government, allegedly provided insider information to clients of an "expert-networking firm," which included hedge funds. According to a DOJ statement, Shimoon provided "highly confidential sales forecast information and new product features for Apple's forthcoming iPhone cellular telephone."
|
"Today's charges allege that a corrupt network of insiders at some of the world's leading technology companies served as so-called consultants who sold out their employers by stealing and then peddling their valuable inside information," said Manhattan U.S. Attorney Preet Bharara.
Components supplier Flextronics is a long-time Apple partner, providing camera and charger parts for the iPhone and the iPod.
"Flextronics has a practice of fully cooperating with regulatory inquiries and has clear policies prohibiting the release of confidential information about the Company and its business partners," explained a spokeswoman for Flextronics, in an email to
TheStreet
. "The employee mentioned in the U.S. Department of Justice's release has been terminated."
In addition to Shimoon, former
AMD
(AMD) - Get Report
employee Mark Anthony Longoria and Manosha Karunatilaka, a former worker at
Taiwan Semiconductor Manufacturing Company
(TSM) - Get Report
, were arrested Thursday morning on charges of wire fraud and conspiracy to commit securities fraud.
The Feds allege that, between January 2008 and June 2010, the expert networking firm paid Shimoon more than $22,000 for consultation services.
Shares of Flextronic rose 14 cents, or 1.84%, to $7.73 on Thursday, as the Nasdaq gained 0.74%. Apple shares rose $1.57 to $321.85.
--Written by James Rogers in New York.
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