Walter pleaded guilty to two counts of securities and wire fraud schemes after being arrested for giving iPad/iPhone insider information.
Flextronics International’s ex-senior director Walter Shimoon on Tuesday plead guilty on claims that Primary Global Research paid him $200 hourly in exchange for Flextronics inside information to hedge funds. He said he provided specific non-public information. Flextronics’ U.S. representative Renee Brotherton made no comment about the guilty plea. Shimoon was arrested in December after he was accused of disclosing the pre-launch of Apple Inc’s iPad information and details about the iPhone 4. He pleaded guilty to two counts of securities and wire fraud schemes. An up to thirty years imprisonment is what he may face on sentencing scheduled on July 8, 2013. He also admitted to disclosing Flextronics’ provider Omnivision Technologies’ production schedules. He said he knew PGR customers used the information in purchasing and selling securities.
Assistant U.S. Attorney Antonia Apps named one customer in court as Kingdom Ridge Capital. Shimoon’s Kingdom contact was employee Nick Caputo, said Apps. According to court documents, Shimoon’s disclosure of Flextronics secrets has enabled hedge fund to profit $560,000 in October 2009. Regulatory filing reflects $350 million U.S. equities investments from Kingdom Ridge Capital. The probe resulted to the implication of some former SAC traders and analysts. So far, no charges have been filed against SAC Capital’s founder, Steven Cohen and other SAC employees. Shimoon additionally confessed to having been paid $27,500 by Broadband Research but owner John Kinnucan’s lawyer Nathaniel Burney said his client did not do anything wrong.
The case is USA v Shimoon et al, U.S. District Court for the Southern District of New York, No. 10-mj-2823.
