Four Execs Arrested For Channel Checking Insider Information About Apple and AMD
Four executives have been arrested as part of an SEC investigation over “channel checking.” Channel checking is when people investigate corporate secrets in order to determine investment decisions. This includes calling suppliers and pressing for forecast information.
The four defendants recently listed include Walter Shimoon (VP of Business Development at Flextronics), Mark Longoria (supply chain manager at AMD), Manosha Karunatilaka (exec at Taiwan Semiconductor Manufacturing Co Ltd), and James Fleishman (sales manager at an “expert networking” firm). Longoria and Karunatilaka were directly hired consultants at Fleishman’s expert networking company.
These executives passed along information to two unnamed hedge funds. According to court filings, Shimoon was paid to leak non-public details about the iPhone 4 and the iPad before official Apple announcements.
[Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry