Thursday, December 16, 2010

"Corrupt network of insiders at some of the world's leading technology companies"

On 16 Dec 2010, certain"expert consultants" who had revealed secrets about Apple Inc.'s iPhone and other technology products to hedge funds were arrested. includes a quote:

The 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," U.S. Attorney Preet Bharara said in a statement.

AppleInsider writes:

Walter Shimoon, senior director of business development at Flextronics, allegedly provided "highly confidential" sales forecasts and details for an unreleased iPhone during his time as a consultant for "expert-network" firm Primary Global. (...)

According to the Silicon Valley Business Journal, a government complaint filed with Shimoon's arrest included a transcript of a wire tap in which Shimoon allegedly said, "It’s a new category altogether. I believe it’s called K48 ... At Apple, you can get fired for saying K48 ... outside of a meeting that doesn’t have K48 people in it. That’s how crazy they are about it."

In a moment of unwitting precognition, he is also alleged to have told a witness cooperating with the investigation, "That would really suck if you recorded all the calls."

Expert-network firms charge a fee to investors for arranging "consulting sessions" between investors and employees of public companies for the purposes of market research, the Journal noted. (...)

Primary Global vice president and sales manager James Fleishman, who was also arrested Thursday, told one executive cooperating with the government, "whatever you're looking for, whether it is short term or long term, we'll have people."

Other consultants charged in the case include former employees at Dell, AMD and Taiwan Semiconductor Manufacturing Co. They were charged with "wire fraud and conspiracy to commit securities fraud and wire fraud," the Journal reports.

A different take on the event may be found at cryptome:

This news just came in. Apple's brazen manipulation of the press and even legal system is sickening beyond belief. Apparently they are arresting employees for "leaking" information about the iPad to Wall Street....against the backdrop of having stolen the WHOLE device...which they have used as a vehicle to fuel Apple's mammoth rise in share price since 2007.


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