David Dodd 4:24 p.m., May 22
San Diegan Provided Insider Information, Says Department of Justice
The Department of Justice announced this morning (Dec. 16) that Walter Shimoon, 39, of San Diego has been arrested and charged with wire fraud and conspiracy in an insider trading case brought by the government. Three others, not from San Diego, have also been arrested. Another pleaded guilty last Friday. The five worked for a New York firm claiming to provide hedge funds with "market intelligence" through a "global advisory team of experts."
According to the Department of Justice, Shimoon was employed by Singapore-based Flextronics International as a senior director of business development in San Diego. Flextronics supplied electronics components to Apple Computer, and therefore was provided information and forecasts on Apple's purchase or shipping orders regarding Flextronics components. The confidentiality of the information was governed by non-disclosure agreements, according to the government. Shimoon got information in advance on Apple's iPad and iPhone products, which have been big sellers. "Shimoon provided highly confidential sales forecast information and new product features for Apple's iPhone cellular telephone" to the New York firm, says the Department of Justice. "Between January 2008 and June 2010, the firm paid Shimoon more than $22,000 for consultation services he provided." Both Apple and Flextronics cooperated with the government in its pursuit of the case.