Walter Shimoon, a former Flextronics executive, plead guilty Tuesday to leaking information about Apple products to Primary Global Research (PGR) and consequently hedge fund and money managers, according to the New York Times.
Shimoon plead guilty to two counts of conspiracy to commit wire fraud and one count of security fraud. The secrets Shimoon leaked included "actual and forecast sales figures for iPhones and iPods in the third and fourth quarters of 2009." Shimoon was able to provide research firms with these numbers weeks before they were public because of Flextronics unique position as the manufacturer of chargers for the iPhone.
Shimoon didn't just tip off PGR to supply chain information and sales figures, he also dropped information about "K48" aka the iPad before its release.
So, you can get, 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. - to a cooperating witness according to taped calls.
You've got to love Wall Street, they may not have "seen" the financial crisis coming, but they sure manage to facilitate the leaking of information about our favorite gadgets.