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
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-8617
Published: 2015-03-04
Cross-site scripting (XSS) vulnerability in the Web Action Quarantine Release feature in the WebGUI in Fortinet FortiMail before 4.3.9, 5.0.x before 5.0.8, 5.1.x before 5.1.5, and 5.2.x before 5.2.3 allows remote attackers to inject arbitrary web script or HTML via the release parameter to module/re...

CVE-2015-2209
Published: 2015-03-04
DLGuard 4.5 allows remote attackers to obtain the installation path via the c parameter to index.php.

CVE-2014-7896
Published: 2015-03-03
Multiple cross-site scripting (XSS) vulnerabilities in HP XP P9000 Command View Advanced Edition Software Online Help, as used in HP Device Manager 6.x through 8.x before 8.1.2-00, HP XP P9000 Tiered Storage Manager 6.x through 8.x before 8.1.2-00, HP XP P9000 Replication Manager 6.x and 7.x before ...

CVE-2014-9283
Published: 2015-03-03
The BestWebSoft Captcha plugin before 4.0.7 for WordPress allows remote attackers to bypass the CAPTCHA protection mechanism and obtain administrative access via unspecified vectors.

CVE-2014-9683
Published: 2015-03-03
Off-by-one error in the ecryptfs_decode_from_filename function in fs/ecryptfs/crypto.c in the eCryptfs subsystem in the Linux kernel before 3.18.2 allows local users to cause a denial of service (buffer overflow and system crash) or possibly gain privileges via a crafted filename.

Dark Reading Radio
Archived Dark Reading Radio
How can security professionals better engage with their peers, both in person and online? In this Dark Reading Radio show, we will talk to leaders at some of the security industry’s professional organizations about how security pros can get more involved – with their colleagues in the same industry, with their peers in other industries, and with the IT security community as a whole.