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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issueslegalDellfinancial resultshardware systemsComponentsCriminalAdvanced Micro DevicesTaiwan Semiconductor Manufacturing CompanyPrimary GlobalFlextronics International

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?