Former Flextronics Employee Expected To Plead Guilty In Insider CaseLast update: 7/5/2011 3:55:50 PM By David Benoit
Of DOW JONES NEWSWIRES A former employee of an electronic-components company is expected to plead guilty Tuesday in a widespread insider trading investigation involving "expert-network" firms. Walter Shimoon, who worked at Flextronics International Ltd. (FLEX), was charged in December and accused by prosecutors of sharing confidential information about Apple Inc.'s (AAPL) iPhone with clients of expert network firm Primary Global Research LLC. Shimoon would become the 12th person to plead guilty to or be convicted of criminal charges in an investigation involving firms that connect hedge funds and others with company experts, for a fee. A hearing for Shimoon, a former senior director of business development at Flextronics, is scheduled for Tuesday in federal court in Manhattan. The judge's chamber confirmed it was a plea hearing. A lawyer for Shimoon wasn't immediately available to comment Tuesday. A spokeswoman for the U.S. Attorney's office declined to comment. Prosecutors in a December complaint alleged that Shimoon had access to sensitive data about Apple's supply chain as an employee at Flextronics. He allegedly received more than $22,000 for speaking with Primary Global clients over two-and-a-half years, according to prosecutors. At one point, prosecutors allege, Shimoon shared sales forecasts and new product features on Apple's iPhone. Apple's product launches and features tend to be well-guarded secrets by the electronics giant, but are the topic of nearly endless speculation in the stock market. A spokesman for Primary Global declined to comment. Representatives for Flextronics and Apple weren't immediately available for comment Tuesday. -By David Benoit, Dow Jones Newswires; 212-416-2458;
david.benoit@dowjones.com
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