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
5 Reasons the Cybersecurity Labor Shortfall Won't End Soon
Steve Morgan, Founder & CEO, Cybersecurity Ventures,  12/11/2017
Oracle Product Rollout Underscores Need for Trust in the Cloud
Kelly Sheridan, Associate Editor, Dark Reading,  12/11/2017
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: Gee, these virtual reality goggles work great!!! 
Current Issue
The Year in Security: 2017
A look at the biggest news stories (so far) of 2017 that shaped the cybersecurity landscape -- from Russian hacking, ransomware's coming-out party, and voting machine vulnerabilities to the massive data breach of credit-monitoring firm Equifax.
Flash Poll
The State of Ransomware
The State of Ransomware
Ransomware has become one of the most prevalent new cybersecurity threats faced by today's enterprises. This new report from Dark Reading includes feedback from IT and IT security professionals about their organization's ransomware experiences, defense plans, and malware challenges. Find out what they had to say!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.