“Federal prosecutors in Manhattan broadened their insider trading crackdown Thursday, arresting four people on charges alleging that so-called ‘expert consultants’ revealed secrets about Apple Inc.’s iPhone and other technology products to hedge funds seeking a trading edge on quarterly earnings reports,” Tom Hays reports for The Associated Press.
“The latest probe targeted Primary Global Research, a Mountain View, California-based firm that offered consulting services to investors on industry trends, issues and regulations. Instead, prosecutors allege, firm executive James Fleishman used four consultants employed by publicly traded companies to create a corrupt clearinghouse for confidential information,” Hays reports. “Fleishman, 41, was charged with wire fraud and conspiracy. Three others, all outside ‘expert consultants’ for Primary Global Research until earlier this year, were charged with wire fraud and conspiracy to commit securities fraud and wire fraud, according to papers filed in federal court in Manhattan.”
Hays reports, “Fleishman helped arrange for Primary Global Research clients, including hedge funds, to speak with the consultants, the papers said. The clients were told about highly confidential Apple sales forecasts information, new product features for the iPhone and a top-secret project known internally at Apple as ‘K48,’ which became the iPad, launched this year, the complaint said… The three consultants charged were Mark Anthony Longoria, 44; Walter Shimoon, 39; and Manosha Karunatilaka, 37.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Paul J.” for the heads up.]