“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.]
R they all fired?
Before they are sent to prison, they should be…
(1) forced to have some face time with Steve Jobs, and other Apple executives
(2) As part of the punishments, all defendants should be forced to use an Andriod phone or better yet… a WP7
(3) forced to use Windows 7 on a outdated PC w/ barely enough RAM
… That should teach them something about the consequence of messing with Apple
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Hang ’em high.
Lots of people should be going to jail.
I say it again, short term trading and micro trading does nothing to add value to any physical product or service that any company provides. Any possible value that may come from liquidity is far outweighed by market volatility.
Solution: The profits from the sale of any stock held for less than 1 month should be double taxed. The write off for the loss on the sale of any stock held for less than 1 month should be halved, or eliminated.
Short term trades, I believe, now make up well over half of total trades while adding little if any benefit and adding great risk to the greater economy. Rumor mongering and other forms of “insider trading” are primarily used by short term traders. Something more needs to be done to reduce the upside and increase the downside of these practices.
@et
I agree. Some may argue that short term trading provides better liquidity. But all I’ve seen is instability. Brokers learn to manipulate the rules to make money for themselves. It does not help the economy and probably adds more fuel for economic crisis like the last credit one.
Gizmodo, you’re next…
Apple did nothing wrong, is doing business the way it should be done, especially on R&D, and has for a long time gone against the (tech) industry standard of announcing vaporware with long lead-ins to freeze the market. However, super secretive R&D with a successful company is what “insiders” thrive on.
How can you leak information on MS (and other tech companies that try to imitate them) – who announces two and three years ahead of time to freeze the market? No insider trading there!
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I wonder if WikiLeaks is a supporter/defender of insider trading?
Great, the Feds can track down these people for corporations but still haven’t found Osama Bin Laden. Guess who runs the U.S. (hint it’s not the American public).
I hope they go to jail for a long time.