FBI: Executives at Dell, AMD sold inside information

Other executives at Flextronics and TSMC allegedly sold iPhone sales forecasts and other data

Four executives at publicly traded technology companies have been arrested on charges they sold inside information about their employers, sometimes for hundreds of thousands of dollars.

The executives allegedly pocketed hefty consulting fees for selling data to Primary Global, a Mountain View, California, market research company. Primary Global recruits experts from a number of industries, including the technology sector, to provide information about trends that it then sells to money managers. But according to the U.S. Department of Justice, one of the firm's salesmen -- James Fleishman -- crossed the line and sold insider information to hedge funds.

"The information trafficked by the four 'consultants' went way beyond permissible market research," the U.S. Federal Bureau of Investigation said Thursday.

Primary Global declined to comment, except to confirm that the four insiders had worked for it as consultants, and to say that Fleishman, who has been with the company since June 2006, has now been placed on leave.

A former Dell global supply manager named Daniel Devore pleaded guilty to fraud charges on Dec. 10, the FBI said. He made US$145,750 from Primary Global between 2007 and 2010.

Devore is no longer employed by Dell, said Dell spokesman David Frink. "Dell is committed to the highest standards of ethics and integrity and we'll cooperate fully with law enforcement authorities," he said.

Devore also provided inside information concerning Dell suppliers including Western Digital and Seagate, according to court filings.

Fleishman was arrested Thursday on wire fraud and conspiracy charges.

Also arrested Thursday were Mark Longoria, formerly a supply chain manager with Advanced Micro Devices (AMD); Walter Shimoon, a senior director of business development with Flextronics International; and Manosha Karunatilaka, an account manager with Taiwan Semiconductor Manufacturing Company (TSMC), the DOJ said.

All three are facing wire and securities fraud charges.

AMD's Longoria made more than $200,000 during a two-year period, prosecutors say.

"It appears that AMD is the victim of an insider trading scheme," AMD said Thursday. Longoria resigned from the company on Oct. 22, 2010, and AMD has been cooperating with the investigation, the company said.

Shimoon, who worked for Apple partner Flextronics, allegedly "provided highly confidential sales forecast information and new product features for Apple's forthcoming 'iPhone' cellular telephone," the FBI said. He earned $22,000 in consulting fees.

Karunatilaka allegedly provided TSMC sales and shipping information.

The investigation is ongoing, the FBI said.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesAdvanced Micro Deviceshardware systemslegalComponentsfinancial resultsCriminalFlextronics InternationalDellTaiwan Semiconductor Manufacturing CompanyPrimary Global

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert McMillan

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?