Former Flextronics executive Walter Shimoon pleaded guilty on Tuesday to charges that he leaked material nonpublic information about Apple, Inc.’s iPhone and iPad to Broadband Research, and possibly as many as 10 other hedge funds. According to Electronista, Shimoon was convicted of securities fraud and conspiracies, but will not be sentenced until 2013.
In December, PadGadget reported on the United States Attorney’s Office filing a criminal complaint against Shimoon, stating that he revealed trade secrets to a hedge fund analyst while being under surveillance by the FBI, who recorded the entire conversation.
Shimoon is one of 14 people that are a part of a network of insider trading conspiracies against such companies as Apple, Inc. and NVIDIA. Leaking this information to hedge fund analysts allows them to have an unfair advantage in stock trading. Those connected to NVIDIA had material fiscal information prior to it being made public and could buy or sell ahead of the game.
This latest confession is proof that Apple, Inc. is watching and when they mean, keep it a secret, they really mean, keep it a secret.