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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.

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Comments

Don Bauder Dec. 16, 2010 @ 12:41 p.m.

CORRECTION: The firm providing the alleged insider information to hedge funds is based in Mountain View, not New York. My error. Best, Don Bauder

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MURPHYJUNK Dec. 16, 2010 @ 1:20 p.m.

compared to all the other stuff that goes on ( bank scamming home owners, and so on) this does not seem to put much of a strain on anyone.

probably someone that did not get in on it blew the whistle on the deal.

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Don Bauder Dec. 16, 2010 @ 7:15 p.m.

Disagree. Hedge funds getting insider information cheats the small investor. It's one of the factors keeping individual investors out of the market now. There are other big factors, of course. Best, Don Bauder

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SurfPuppy619 Dec. 17, 2010 @ 9:02 a.m.

Hedge funds getting insider information cheats the small investor.

The ONLY way the big boys can make money is by getting advanced info and using other means that the small guy doesn't have access to.

It has been proven over and over again, money managers don't out perform an index fund-proven over and over.

I have to laugh at the yahoo who is bamboozling the county retirement system with million dollar yearly fees, and the idiots officials who are buying it hook, line and sinker. Idiots running gov-pure idiocy.

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Visduh Dec. 16, 2010 @ 2:50 p.m.

Another small fry gets a five-figure payoff and he's in big trouble. But John Moores who cleared billions when he unloaded Peregrine is a "respected" citizen. Where's the fairness and sense of proportion?

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Don Bauder Dec. 16, 2010 @ 7:16 p.m.

Yes, he only got $22,000, but the SEC has to start somewhere (it's about time!) It's the hedge funds that should get nailed. Best, Don Bauder

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MURPHYJUNK Dec. 17, 2010 @ 8:54 a.m.

they should start at the top and work their way down, ( and maybe scare off any of the small fry on the fence thinking of trying it)

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SurfPuppy619 Dec. 17, 2010 @ 9:03 a.m.

they should start at the top and work their way down, ( and maybe scare off any of the small fry on the fence thinking of trying it)

========================= Hhahahahhaha...hold the ones making billins and buying off the gov responsible!!!...hahahahahah, Murphyjunk makes a funny!!!!!

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Don Bauder Dec. 17, 2010 @ 9:20 a.m.

See my response to MURPHYJUNK. The government starts at the top of the income ladder when doling out welfare and works its way down. In punishing wrongdoing, the government starts at the bottom and works its way up (very, very seldom getting to the top.) Best, Don Bauder

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Don Bauder Dec. 17, 2010 @ 9:18 a.m.

The U.S. government starts at the top and works its way down the income scale when handing out welfare payments, but starts at the bottom and works its way up when punishing financial wrongdoing. Best, Don Bauder

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Don Bauder Dec. 16, 2010 @ 10:03 p.m.

Moores also cleared close to a billion on ballpark land deals. Here's an ancient poem I have used before, but it's always worth repeating: The law doth punish man or woman Who steals a goose from off the common But lets the greater felon loose Who steals the common from the goose.

Best, Don Bauder

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a2zresource Dec. 17, 2010 @ 6:29 a.m.

It occurs to me that the insider trading aspect of this could have been cured by first leaking any information to be insider-sanitized to an obscure, rarely-read blogger on the Internet...

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Don Bauder Dec. 17, 2010 @ 9:23 a.m.

And who might that obscure, rarely-read blogger be? Should I be looking in the mirror? Best, Don Bauder

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