Vulnerabilities / Threats
12/17/2010
01:04 PM
Connect Directly
RSS
E-Mail
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
Register for Dark Reading Newsletters
Partner Perspectives
What's This?
In a digital world inundated with advanced security threats, Intel Security seeks to transform how we live and work to keep our information secure. Through hardware and software development, Intel Security delivers robust solutions that integrate security into every layer of every digital device. In combining the security expertise of McAfee with the innovation, performance, and trust of Intel, this vision becomes a reality.

As we rely on technology to enhance our everyday and business life, we must too consider the security of the intellectual property and confidential data that is housed on these devices. As we increase the number of devices we use, we increase the number of gateways and opportunity for security threats. Intel Security takes the “security connected” approach to ensure that every device is secure, and that all security solutions are seamlessly integrated.
Featured Writers
White Papers
Cartoon
Current Issue
Dark Reading's October Tech Digest
Fast data analysis can stymie attacks and strengthen enterprise security. Does your team have the data smarts?
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2013-0334
Published: 2014-10-31
Bundler before 1.7, when multiple top-level source lines are used, allows remote attackers to install arbitrary gems by creating a gem with the same name as another gem in a different source.

CVE-2014-2334
Published: 2014-10-31
Multiple cross-site scripting (XSS) vulnerabilities in the Web User Interface in Fortinet FortiAnalyzer before 5.0.7 allow remote attackers to inject arbitrary web script or HTML via unspecified vectors, a different vulnerability than CVE-2014-2336.

CVE-2014-2335
Published: 2014-10-31
Multiple cross-site scripting (XSS) vulnerabilities in the Web User Interface in Fortinet FortiManager before 5.0.7 allow remote attackers to inject arbitrary web script or HTML via unspecified vectors, a different vulnerability than CVE-2014-2336.

CVE-2014-2336
Published: 2014-10-31
Multiple cross-site scripting (XSS) vulnerabilities in the Web User Interface in Fortinet FortiManager before 5.0.7 and FortiAnalyzer before 5.0.7 allow remote attackers to inject arbitrary web script or HTML via unspecified vectors, a different vulnerability than CVE-2014-2334 and CVE-2014-2335.

CVE-2014-3366
Published: 2014-10-31
SQL injection vulnerability in the administrative web interface in Cisco Unified Communications Manager allows remote authenticated users to execute arbitrary SQL commands via a crafted response, aka Bug ID CSCup88089.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Follow Dark Reading editors into the field as they talk with noted experts from the security world.