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."