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Bloomberg reports on the recent testimony of former Samsung manager Suk-Joo Hwang, who has revealed his role in leaking secrets on volumes of iPad displays being shipped to Apple as part of an insider trading trial targeting Primary Global Research executive James Fleishman. Fleishman was one of four insiders charged last year with leaking Apple secrets through so-called "expert networks" such as Primary Global Research, which paid industry insiders to provide confidential information and then traded on and sold the information to their own clients.
Hwang, who has been granted immunity, detailed how he provided information to Fleishman on iPad display shipments in December 2009, before the product had been introduced.
Hwang said that during lunch at a restaurant in Mountain View, California, with Fleishman and a hedge fund manager he identified as “Greg,” he gave them confidential information about Samsung’s shipment of liquid crystal display screens it was supplying to Apple. The iPad made its U.S. debut in April 2010, four months after the lunch.
“One particular thing I remember vividly was that I talked about the shipment numbers of Apple, it was about iPad,” he said. “This is in December 2009, before it came out with the tablet PC, they didn’t know the name then, so I talked to them about the tablet shipment estimates in that meeting.”
Hwang notes that he immediately "freaked out" about disclosing the information, feeling that he had spoken too loudly in the restaurant and wondering whether a man at a nearby table who may have overheard the conversation was an Apple employee.
Hwang worked on the side as a consultant with Primary Global Research until August 2010, with his consulting fee having been raised from $200 an hour to $350 in February of that year after he expressed reservations about continuing to provide information following a promotion at Samsung. Hwang was fired by Samsung several months ago as the insider trading scandal unfolded.
Back in July, one of the other insiders charged in connection with the case, Flextronics executive Walter Shimoon, pleaded guilty to leaking iPhone and iPad secrets to Primary Global Research.
Top Rated Comments
(View all)It may surprise people to learn how corrupt some parts of Samsung are. They represent around 10% of South Korea's GDP last time I checked. They are a very powerful entity.
If you think they're badly corrupt, you've obviously never lived in New Jersey :)
$350 a month - I can't believe it! I don't know how much that "research" firm charged hedge fonds for this kind of information but how naive was that manager? Selling his career for a little bit of petty change? And then even make it official with a "consultant" contract? Oh my goodness - that is almost pathetic - no wait - that IS pathetic. If I would ever do something like that - and I worked for companies with such kind of trade secrets - I would a) not do that over the books b) not meet anywhere near where other employees of any involved company might possibly be and c) get one huge sum in cash. The only problem: I have a too high level of integrity to even do that from the get-go. :D
"Hwang worked on the side as a consultant with Primary Global Research until August 2010, with his consulting fee having been raised from $200 an hour to $350 in February of that year after he expressed reservations about continuing to provide information following a promotion at Samsung. Hwang was fired by Samsung several months ago as the insider trading scandal unfolded.
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Who really cares... Even with all the "android copycats" and other knockoffs of Apple products, they are killing the so called competition...
Apple stockholders and anyone else who trades legally in Apple stock should care. Inside traders steal from them.
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oh okay... reading educates... :o but still, he does get that how often? Once a meeting, maybe for 2h per meeting? That is still not worth the risk since he is paid as "consultant." :D
Like any consultant, he would be billing for time "worked", gathering and analyzing data; not just the time presenting information to his clients. It could be hundreds of hours a year. I assume he is not an idiot, and was charging enough to be compensated for his risks.
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If you think they're badly corrupt, you've obviously never lived in New Jersey :)
I just looked at a couple of maps-- the Korean peninsula and NJ actually look pretty similar.
Who really cares... Even with all the "android copycats" and other knockoffs of Apple products, they are killing the so called competition...
This is all about insider trading and nothing at all about competition between iOS and Android. The hedge fund manager was looking to make millions from hedging probably for Apple. Many people expected something was in the works but to have proof not only it existed, but also the expected numbers would be significant information to properly hedge the stock. Millions, if not hundreds of millions made in seconds.
That is scary. Those Apple employees are dangerous. Nobody in that restaurant would have been seen again. They could use Apple employees in military operations. :eek: