Former executive at Apple supplier Flextronics Walter Shimoon pleaded guilty to two counts of conspiracy to commit wire fraud and one count of security fraud in a Manhattan court on Tuesday. The charges stem from a crackdown on “expert networks,” which make money by connecting hedge funds and financial institutions with industry insiders such as Shimoon. The practice, which had gone widely unmonitored for years, is now said to be under the Securities and Exchange Commission’s microscope. Shimoon was arrested late last year and accused of leaking insider iPhone and iPod sales figures in the third and fourth quarters of 2009. He also leaked details surrounding the iPhone 3GS, which was unreleased at the time, and the still unannounced iPad. Shimoon is scheduled to be sentenced in July 2013 according to The New York Times. More →
Reuters is reporting that former Apple global supply chain manager, Paul Devine, has pled guilty to wire fraud, conspiracy and money laundering in a San Jose, CA federal court. Mr. Devine, who worked for Apple from 2005 to 2010, was accused of taking kickbacks and “using his position to pass confidential information to help suppliers negotiate favorable contracts with Apple.” As part of his plea, Devine forfeits $2.28 million in cash and property. ”Mr. Devine is a good man who made a mistake, and now he’s trying to make amends,” said his attorney. Sentencing is set for Monday, June 6th, when Devine will face a maximum sentence of twenty years. A civil lawsuit is also pending.