Apple secrets leaked early by inside traders, arrests reveal

We don’t normally cover the “business crime” beat, but there’s a pretty interesting gadget angle here. As part of a larger crack down on insider trading, three technology executives and a “salesman for an ‘expert network’” have been arrested for leaking confidential tips to hedge funds. What sort of secrets, you ask? A certain executive for Flextronics, Walter Shimoon, happened to pass on information concerning an iPhone update and the iPad well before they became official (Flextronics supplied Apple parts). “At Apple you can get fired for saying K48 … outside of a, you know, outside of a meeting that doesn’t have K48 people in it. That’s how crazy they are about it,” he said during an October 2009 phone call intercepted by authorities, where K48 was the codename for the iPad , which didn’t see the light of day until 2010 (we’re assuming here that’s not all he said). The others arrested hail from AMD (leaking financial details) and Taiwan Semiconductor Manufacturing, and a fifth person already pled guilty (a former Dell global supply manager). Remember, kids, crime doesn’t pay. Apple secrets leaked early by inside traders, arrests reveal originally appeared on Engadget on Thu, 16 Dec 2010 18:59:00 EDT. Please see our terms for use of feeds . Permalink

Posted by on December 16, 2010. Filed under News, Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry