Expert pleads guilty in U.S. insider probe

Discussion in 'Stock Market' started by hvactec, Jul 5, 2011.

  1. hvactec

    hvactec VIP Member

    Jan 17, 2010
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    New Jersey
    Ex-Flextronics director latest to plead in broad probe

    * Shimoon gave illegal tips on Apple iPad, iPhone

    * He faces up to 30 years in prison

    By Basil Katz

    NEW YORK, July 5 (Reuters) - A former senior director at Flextronics International (FLEX.O) pleaded guilty on Tuesday, telling a U.S. judge he was paid $200 an hour by an expert network firm to spill inside information to hedge funds.

    Walter Shimoon, 39, was the latest out of more than a dozen accused in a broad insider trading probe to plead guilty in Manhattan federal court to working illegally while consulting for Primary Global Research (PGR).

    At the plea hearing on Tuesday, Shimoon told U.S. District Judge Jed Rakoff that he was paid $200 an hour by PGR to give secrets about Flextronics or its customers to hedge funds and investors, often over the phone.

    "On these calls, I offered specific non-public information," Shimoon said.

    A U.S. representative for Singapore-based electronics equipment maker Flextronics did not return a call seeking comment on the guilty plea.

    Shimoon, arrested in December, was accused of leaking secrets about Apple Inc (AAPL.O) iPad ahead of its launch and giving up new details about the company's iPhone 4.

    Following an agreement with prosecutors, Shimoon pleaded guilty to two counts of conspiracy to commit securities fraud and wire fraud and one count of securities fraud. He faces up to 30 years in prison at his July 8, 2013 sentencing.

    Shimoon on Tuesday also said he provided production schedules and sales forecasts for Flextronics provider Omnivision Technologies (OVTI.O) to PGR customers.

    "I knew they (the customers) used the information I provided in purchasing and selling securities," Shimoon said.

    One customer, identified in court papers as a hedge fund in White Plains, New York, was named in court by assistant U.S. Attorney Antonia Apps as Kingdom Ridge Capital. Shimoon's contact there, Apps said, was employee Nick Caputo. Caputo did not immediately return a call requesting comment.

    FULL STORY Expert pleads guilty in U.S. insider probe | Reuters

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