Alnoor Ebrahim, an ex-AT&T employee has admitted to sharing company secrets like the sales numbers for the Apple iPhone to traders who bought shares illegally using the information. Ebrahim, 57, is a U.S. citizen born in Tanzania and he pleaded guilty in regards to insider trading. This news comes on the heels of former Goldman Sachs Group board member Rajat Gupta being convicted of insider trading this past Friday.
Ebrahim was part of an “expert-network ring” where some employees of specialized firms like Primary Global Research helped funnel corporate secrets from consultants and pass them on to companies and hedge funds.
“I provided insider information concerning AT&T’s sales of Apple’s iPhone and RIM’s Blackberry products, as well as other handset set devices sold through AT&T distribution channels,” said Ebrahim in front of U.S. District Judge Paul Oetken in Manhattan.
Ebrahim pleaded guilty to one count of conspiracy to commit wire and securities fraud. Manhattan federal prosecutors made a plea agreement with the defense and recommend that Ebrahim does a maximum of two years in prison.
“We took this matter very seriously and cooperated fully with the authorities,” stated AT&T spokesman Marty Richtman. “The conduct alleged was clearly against our code of business conduct, and Mr. Ebrahim is no longer an AT&T employee.”
Ebrahim was identified by an attorney for former Silicon Valley sales manager James Fleishman, who is imprisoned on conspiracy charges. The case was filed as U.S. v. Alnoor Ebrahim, U.S. District Court for the Southern District of New York, but the case number is unknown.