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Apple's former insider trading watchdog indicted for... insider trading
A former Apple lawyer who oversaw the company's insider trading policy has been indicted on insider trading charges. Prosecutors allege Gene Levoff traded shares based on his knowledge of Apple's financial results before they were made public.
SEC brings charges in connection with hack of its financial system
The United States Securities and Exchange Commission announced today that it is bringing charges against a Ukranian hacker for breaking into the agency's corporate filing system to access nonpublic information. The SEC is also charging a number of individual traders and entities who used that information to generate more than $4.1 million on illegal trades. The Attorney's Office for the District of New Jersey announced it will be bringing related criminal charges.
Coinbase finds no wrongdoing in Bitcoin Cash insider trading probe
Last December, Coinbase halted trading of Bitcoin Cash just hours after it unexpectedly announced the addition of the cryptocurrency to its platform. The company, which initially said it wouldn't support Bitcoin Cash, a hard fork of Bitcoin, reversed its position, later saying it would add the currency by January 1st, 2018. Surprising many, it then announced access to Bitcoin Cash on December 19th, but the currency had already begun experiencing a price surge in the hours before the announcement, leading many to speculate that Coinbase employees who knew about the addition ahead of time had started buying up Bitcoin Cash in expectation of a price increase once Coinbase officially announced its availability. Accusations of insider trading led Coinbase to launch an investigation into the matter, which has now been wrapped up.
Coinbase halts Bitcoin Cash transactions over insider trading fears
The start of Bitcoin Cash trading on the Coinbase exchange was supposed to be a great opportunity to get into a major new cryptocurrency while its values weren't yet through the roof, but that's... not how it panned out. Coinbase froze transactions just a few hours after they began in order to investigate numerous accusations of insider trading. Observers noticed that the price of Bitcoin Cash rose sharply before news of its availability on the exchange broke, and that there was a sharp selloff virtually the moment trading started. From a cursory glance, it looked like someone knew about the Coinbase move in advance, triggered a flurry of trading that led to a spike in price, and took advantage of this for a massive windfall.
Equifax committee says executive stock sales weren’t insider trading
The eyes of the Securities and Exchange Commission and the US Department of Justice have been focused on some questionable stock sales initiated by three Equifax executives a month before the data breach that exposed 143 million US consumers' personal information was revealed to the public. Those agencies have been investigating the sales, which amounted to nearly $1.8 million, and are working to determine whether they were the result of insider trading. However, CNBC reports today that an Equifax committee has reviewed the sales and found no signs of misconduct.
Equifax data breach is also being investigated by UK officials
While 143 million US residents were affected by the Equifax breach, they weren't the only ones impacted. Nearly 700,000 UK residents also had their information stolen -- including phone numbers, driver's license numbers, email addresses, user names, passwords and partial credit card details -- and UK authorities are now investigating the company.
SEC suspects hackers used stolen insider info for trading
US Securities and Exchange Commission chief Jay Clayton has made a couple of security-related revelations in his recently published "Statement on Cybersecurity." He admitted that an attacker infiltrated the agency's EDGAR database in 2016 by exploiting a software vulnerability to gain access to non-public info. SEC patched the flaw as soon as it was discovered, but it found out just last month that the attackers may have used the insider information they stole to profit from financial trades.
Equifax stock sales prompt DOJ investigation for insider trading
Things are about to get even worse for Equifax, and rightfully so. According to reports from Bloomberg, the US Department of Justice (DOJ) has opened a criminal investigation into Equifax officials' stock sales just before the announcement of the security breach that exposed data from 143 million US consumers. Equifax CFO John Gamble, President of US Information Solutions Joseph Loughran and President of Workforce Solutions Rodolfo Ploder dumped nearly $1.8 million in stock just after the company discovered the breach and about a month before it was announced. Equifax has maintained that the three didn't know about the breach when they sold the stock.
Insider trader caught because he googled how to commit fraud
Look, we don't want to tell you how to commit crimes, but we do know that Googling how to commit said crime isn't a smart starting point. It's a lesson the Department of Justice wants you to learn, after arresting a person on suspicion of insider trading who looked up how to do so online.
Chinese hackers allegedly stole secrets from US law firms
Three Chinese hackers have been charged with insider trading after stealing secrets from American law firms. The Department of Justice has revealed that Lat Hong, Bo Zheng and Chin Hung installed malware on servers in order to access confidential data. The group was able to obtain documents relating to proposed mergers and acquisitions targets. Knowing what blockbuster deals were coming, the group bought shares in the target businesses. Through a series of deals, officials believe that the trio made upwards of $4 million in illegal profit.
Ubisoft executives fined millions for alleged insider trading
In addition to a looming hostile takeover, Ubisoft corporate has to deal with over a million Euros in fines for alleged insider trading. The Autorité des Marchés Financiers (AMF) has levied a combined €1.27 million (almost $1.4 million) fine against Ubisoft Montreal CEO Yannis Mallat and VP of corporate affairs Francis Baillet. Executive director of worldwide studios Christine Burgess, Ubisoft Montreal VP of executive operations Olivier Paris and Damien Moret, who's the director of brand development for the company were also named.
Russian hackers reportedly stole stock trading info from Dow Jones
Last week, Dow Jones (owner of The Wall Street Journal among other things) said that its customer database was hacked -- but it's possible the company has been contending with a much bigger data breach for a long time now. According to Bloomberg, the FBI, Secret Service, and SEC have all been investigating a theft of data from Dow Jones by Russian hackers who wanted to access insider trading information. There's a bit of a twist to the story, however: Dow Jones is strongly denying the Bloomberg report.
DraftKings bans employees from betting on fantasy games
Well that didn't take long. After a strong, almost oppressive initial marketing blitz at the start of the NFL season and the announcement that it would soon expand into eSports, DraftKings has come under fire for insider trading. An employee at the company reportedly used non-public information to place winning bets on rival fantasy gaming site, FanDuel, and net roughly $350,000 in a week. New York Attorney General Eric Schneiderman has already opened an investigation into the scheme but not before the DraftKings preemptively banned its employees from putting money down on these games.
DraftKings and FanDuel face questions about 'insider trading'
Massive ad campaigns have made the rise of daily fantasy hard to ignore, but maybe there's one thing that could put the brakes on the likes of FanDuel and DraftKings: scandal. The issue seems to have started with a forum thread on Rotogrinder calling out "Millionaire Maker" information posted early by a DraftKings employee. Usually, that info is not available until after games start because its impact on each football player's value could help someone set up their roster, and it's come under more scrutiny since that same employee won $350,000 in the same week on competing site FanDuel. Now players wonder who has access to what information, when, and if they're using it to gain an edge by playing on rival daily fantasy sites. DraftKings and FanDuel have responded to the controversy with a joint statement, which is included after the break.
Feds charge nine hackers for $30M insider trading scheme
The Wall Street Journal reports that federal prosecutors are set to unseal charges Tuesday against nine hackers and stock traders involved in an insider trading operation that netted more than $30 million on illicit deals. The group to be charged allegedly had been conducting sophisticated cyber-attacks against newswire services in order to steal upcoming merger and acquisition information that had been uploaded to the newswire's servers -- but not yet published -- and position their investments accordingly. The group was discovered after a multi-agency investigation involving the DHS, FBI, SEC and the Secret Service.
Former Apple supplier exec pleads guilty to leaking iPhone details
Former Flextronics employee Walter Shimoon pleaded guilty to charges of conspiracy to commit wire fraud and security fraud. Shimoon leaked information about upcoming Apple products to hedge fund traders in late 2009. He is one of 11 people who have admitted their guilt after the government's crackdown on insider trading. Mr Shimoon and the others were industry experts who worked with Wall Street analysts and managers. The government alleges this relationship got too cozy and the information shared between the two groups crossed the line from "permissible market research" to insider trading. Mr Shimoon was recorded talking about the unreleased iPad (K48 codename) and iPhone as well as confidential sales information. He told a government witness, "So, you can get, at Apple you can get fired for saying K48...outside of a, you know, outside of a meeting that doesn't have K48 people in it. That's how crazy they are about it." [Via AppleInsider]
Apple secrets leaked early by inside traders, arrests reveal
We don't normally cover the "business crime" beat, but there's a pretty interesting gadget angle here. As part of a larger crack down on insider trading, three technology executives and a "salesman for an 'expert network'" have been arrested for leaking confidential tips to hedge funds. What sort of secrets, you ask? A certain executive for Flextronics, Walter Shimoon, happened to pass on information concerning an iPhone update and the iPad well before they became official (Flextronics supplied Apple parts). "At Apple you can get fired for saying K48 ... outside of a, you know, outside of a meeting that doesn't have K48 people in it. That's how crazy they are about it," he said during an October 2009 phone call intercepted by authorities, where K48 was the codename for the iPad, which didn't see the light of day until 2010 (we're assuming here that's not all he said). The others arrested hail from AMD (leaking financial details) and Taiwan Semiconductor Manufacturing, and a fifth person already pled guilty (a former Dell global supply manager). Remember, kids, crime doesn't pay.
Ex-AMD CEO Hector Ruiz steps down as Globalfoundries chairman amid insider trading scandal
We won't dive back into all the backstory that led to former AMD CEO Hector Ruiz's current troubles as the chairman of AMD spin-off Globalfoundries, but let's just say that when your name is in the same sentence as "insider trading scandal" and "hedge fund probe," you're probably in a pretty bad way. While this story is obviously still far from over, it looks like Ruiz has at least realized the gravity of his predicament, and announced today that he's taking a "voluntary leave of absence" before formally resigning from the company on January 4th, 2010. He'll be replaced immediately by former Broadcom CEO Alan "Lanny" Ross, who will serve as interim chairman until the company's board appoints a permanent chairman.
Ex-AMD chief Hector Ruiz caught up in insider-trading scandal
Hector Ruiz certainly led a checkered career as CEO of AMD, earning the highest CEO salary in the semiconductor industry as his company's stock dropped, its products dragged, and its fortunes sank, but the man didn't stop there -- it looks like he may also have been involved in a little illegal insider trading on the side. According to the Wall Street Journal, Ruiz is the heretofore unnamed AMD executive who illegally tipped off a hedge fund investor about the company's big spinoff of Globalfoundries, ultimately leading to criminal and civil charges against Galleon and six of its employees. Ol' Hec's currently in the clear, as he hasn't been charged with anything, but considering he's now the chairman of Globalfoundries, well, let's say things are about to get a little sticky. We'll let you know -- we've got a feeling Gizmondo's Stefan Eriksson is going to look like small potatoes when this is all over.
Inventec Appliances execs fail to disclose iPod order cuts, could face prison
Earlier this year, Inventec Appliances (spun off from Inventec Electronics) was raided as prosecutors began looking for evidence to support charges of alleged insider trading, and now it looks like nine of the firm's employees could be headed to the slammer. Taiwan's Banciao District Prosecutors Office "alleged that nine executives and one lower level employee failed to publicly reveal a steep drop in iPod orders until after they had sold off nearly $22.4 million worth of stock," and although the employees knew of the order cuts as early as January 19th, nothing was publicly revealed until mid-March. Purportedly, prosecutors "are seeking the stiffest penalties against the two top executives," and if the evidence sticks, we have all ideas that Inventec will be huntin' a new Chairman (and President, too) in the not-too-distant future.[Via TUAW]
