“A former AT&T employee admitted on Monday to sharing company secrets such as sales numbers for Apple Inc’s iPhone to traders who illegally bought shares on the information,” Basil Katz reports for Reuters.
“Alnoor Ebrahim, 57, a U.S. citizen born in Tanzania, is the latest person to plead guilty in the U.S. government’s crackdown on insider trading, which claimed its biggest target to date on Friday – former Goldman Sachs Group Inc board member Rajat Gupta,” Katz reports. “‘I provided insider information concerning AT&T’s sales of Apple’s iPhone and RIM’s (Research In Motion Ltd Blackberry products, as well as other handset set devices sold through AT&T distribution channels,’ Ebrahim told U.S. District Judge Paul Oetken in Manhattan.”
Katz reports, “Ebrahim pleaded guilty to one count of conspiracy to commit wire and securities fraud. Manhattan federal prosecutors, in a plea agreement with the defense, recommended that Ebrahim be sentenced to a maximum of two years in prison.”
Read more in the full article here.
Anything to gain an advantage.
Indeed. This type of activity undoubtedly goes on all of the time. It always has, and it always will. Catching a few people may slow it down a bit. But there is far too much money to be made for the greedy to pass up the insider trading edge. The corruptible side of human nature often wins.
What exactly is “wire fraud” anyway? Okay, I’ll go use DuckDuckGo and look it up.
You don’t need to look it up. Basically any crime that involves any info that goes over a “wire” invokes the wire fraud law separate and apart from any law on the underlying activity. So…..any phone call, any email any web activity of any kind comes under the wire fraud law. Cheers !!
What is it called when politicians were doing the same in Washington?
BOOYAH!
It’s called “business as usual”.
The government has no business here. The free market can obviously regulate itself. No doubt these employee’s would have copped to their offenses out of pure guilt eventually!
A fruity RIM leak…?
Oh, that’s just too easy (x2).
LOL…
You do t have to have insider info about Apple to make money on Apple. You just have to be a person above average intelligence. And read MDN of course.