Five more people, including former employees with
Dell, Advanced Micro Devices and Taiwan Semiconductor Manufacturing,
were arrested in the federal government’s expanding investigation into
insider trading that already has snared executives with several major
high tech firms.
Federal prosecutors announcing the arrests Dec. 16
said the defendants were part of a complex scheme that included
employees at the technology companies who also worked as consultants
for what investigators said was an “expert networking” firm. James
Fleishman, a sales manager at the expert networking firm, acted as the
conduit between the four consultants and investors, according to
prosecutors.
Fleishman, who was charged with conspiracy,
reportedly worked for Primary Global Research (PGR), the same place Don
Chu was employeed. Chu was arrested in November on similar charges.
“Today’s charges allege that a corrupt network of
insiders at some of the world’s leading technology companies served as
so-called ‘consultants’ who sold out their employers by stealing and
then peddling their valuable inside information,” U.S. Attorney Preet Bharara said
in a statement, adding that the information in the complaint and the
plea agreement of Daniel Devore last week “describe criminal conduct
that went well beyond any legitimate information sharing or
good-faith business practices.”
For more, read the eWeek article: Ex-AMD, Dell Employees Charged in Insider Trading Case.l