Vulnerabilities / Threats

12/17/2010
01:04 PM
50%
50%

FBI Arrests Four For Insider Trading

Federal authorities allege tech firm insiders sold confidential information relating to Apple, AMD, Dell, Flextronics, and Taiwan Semiconductor.

Federal Bureau of Investigation (FBI) authorities have arrested multiple people on charges of insider trading, including selling confidential information about Apple, AMD, Dell, Flextronics, and Taiwan Semiconductor Manufacturing Company, for a total of more than $400,000.

A complaint unsealed in Manhattan federal court on Wednesday alleges that four insiders at technology companies participated in telephone calls with clients of investment research firm Primary Global Research (PGR) in the guise of "consulting," and that those customers included at least two hedge funds, which were not named in the complaint.

On Wednesday, authorities made four arrests related to the charges outlined in the complaint. These include Mark Anthony Longoria, who worked for Advanced Micro Devices (AMD), Water Shimoon of Flextronics, and Manosha Karunatilaka, who was employed by Taiwan Semiconductor Manufacturing Company. According to the complaint, Longoria received $200,000 from PGR, while the others respectively netted $22,000 and $35,000.

In addition, authorities announced that last Friday, Daniel Devore -- formerly a global supply manager for Dell, and who likewise worked as a consultant for PGR -- pled guilty to wire fraud and conspiracy to commit wire fraud and securities fraud charges. They said Devore received about $145,750 from PGR for providing confidential information.

Also arrested on Wednesday was James Fleishman, VP of sales at PGR. Authorities allege that he arranged meetings between the consultants trading in insider information and PGR's clients, and have charged him with wire fraud and conspiracy charges for conspiring to provide confidential information to those clients.

"Today's charges allege that a corrupt network of insiders at some of the world's leading technology companies served as so-called 'consultants' who sold out their employers by stealing and then peddling their valuable inside information," said Manhattan U.S. Attorney Preet Bharara in a statement.

"The information trafficked by the four 'consultants' went way beyond permissible market research; it was insider information," said FBI assistant director-in-charge Janice K. Fedarcyk in a statement. "And the fifth defendant was directly involved in the transfer of inside information from the consultants to hedge funds and other end users."

For example, the complaint alleges that Shimoon sold Apple's sales forecast data, as well as forthcoming iPhone features. It also mentions "cooperating witnesses" who detailed phone calls with Longoria, during which he shared AMD's "revenue information, average sales prices, product sales figures, and gross margin information."

SEE ALSO:

Defense Department Aligning Insider Threat Detection

Former IT Director Imprisoned For Hacking Employer's Servers

DARPA Developing Tech To Stop Insider Threats

Feds Bust Akamai Insider

Database Admin Gets 12 Months For Hacking Employer

Internal Sabotage Security Risks Rising

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
'Hidden Tunnels' Help Hackers Launch Financial Services Attacks
Kelly Sheridan, Staff Editor, Dark Reading,  6/20/2018
Inside a SamSam Ransomware Attack
Ajit Sancheti, CEO and Co-Founder, Preempt,  6/20/2018
Tesla Employee Steals, Sabotages Company Data
Jai Vijayan, Freelance writer,  6/19/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-12716
PUBLISHED: 2018-06-25
The API service on Google Home and Chromecast devices before mid-July 2018 does not prevent DNS rebinding attacks from reading the scan_results JSON data, which allows remote attackers to determine the physical location of most web browsers by leveraging the presence of one of these devices on its l...
CVE-2018-12705
PUBLISHED: 2018-06-24
DIGISOL DG-BR4000NG devices have XSS via the SSID (it is validated only on the client side).
CVE-2018-12706
PUBLISHED: 2018-06-24
DIGISOL DG-BR4000NG devices have a Buffer Overflow via a long Authorization HTTP header.
CVE-2018-12714
PUBLISHED: 2018-06-24
An issue was discovered in the Linux kernel through 4.17.2. The filter parsing in kernel/trace/trace_events_filter.c could be called with no filter, which is an N=0 case when it expected at least one line to have been read, thus making the N-1 index invalid. This allows attackers to cause a denial o...
CVE-2018-12713
PUBLISHED: 2018-06-24
GIMP through 2.10.2 makes g_get_tmp_dir calls to establish temporary filenames, which may result in a filename that already exists, as demonstrated by the gimp_write_and_read_file function in app/tests/test-xcf.c. This might be leveraged by attackers to overwrite files or read file content that was ...