Former Flextronics Executive Pleads Guilty to Leak Apple Secrets

[Phillip Swanson]

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.

PGR, a "research" firm, has been the target of federal investigation into insider information being made available via "expert networks." These "research" firms solicit and bribe employees from large companies/corporations for nonpublic insider information and then sell it to Wall Street money managers.

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.

Source: NYT

[RICO_]

Ruh Roh! Your money, cars, clothes, dog, kids, house, business, furniture, cats, wife and soul all belong to Steve now.

[spider_romeo]

You can Lick but don't Leak, ok.....

[frankyfontaine]

Ruh Roh! Your money, cars, clothes, dog, kids, house, business, furniture, cats, wife and soul all belong to Steve now.

Does he at least get to keep his iPhone?

[RICO_]

Does he at least get to keep his iPhone?

Nope. But don't worry, at the rate things are going with the iPad, they will soon become standard issue as entertainment for prisoners with lengthy sentences.

[Lakki2]

Does he at least get to keep his iPhone?

Wow from iPhone/iPod/iPad user to entertainment for prisoners.