Flextronics Director Pleads Guilty to Leaking iPhone 4 and iPad Details

Flextronics Director Pleads Guilty to Leaking iPhone 4 and iPad Details

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Former Flextronics Director Walter Shimoon has pled guilty to two counts of conspiracy to commit securities fraud and wire fraud and one count of securities fraud for leaking details about the iPhone 4 and iPad.

Flextronics supplied Apple with camera and battery components and Shimoon used his position there to earn $200 per hour by leaking insider information to a group of "hedge funds and expert networks".

Fortune notes that while being wire tapped by the FBI, Shimoon gave his contact early sales figures and dropped two bombshells:

● The iPhone 4: Apple, he told his contact, was "coming out next year" with a new iPhone that's "gonna have two cameras ... It'll be a neat phone because it's gonna have a five-megapixel auto-focus camera and it will have a VGA forward-facing videoconferencing camera." Apple announced the iPhone 4 -- with its two cameras -- eight months later.

● The iPad: "They [Apple] have a code name for something new ... It's ... It's totally ... It's a new category altogether... It doesn't have a camera, what I figured out. So I speculated that it's probably a reader. ... Something like that. Um, let me tell you, it's a very secretive program ... It's called K, K48. That's the internal name. So, you can get, at Apple you can get fired for saying K48." The iPad -- code named K48 -- was unveiled four months later.

Kingdom Ridge used this information to make $560,000 in profits in October 2009.

Shimoon pled guilty and sentencing is scheduled for July 8, 2013. He could spend up to 30 years in prison.

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Flextronics Director Pleads Guilty to Leaking iPhone 4 and iPad Details

JK - July 7, 2011 at 4:48am
WTF? 30 years sentence, that insane, he spread kind of rumors, nothibg was sure shot, i think these techy websites should also be punished they also hit 90% confirm rumor.
Josef - July 6, 2011 at 7:42pm
Soon you can fit iPhone 4 into his butthole...
boreddrummer - July 6, 2011 at 6:22pm
seems harsh, he didn't disclose any actual info on the ipad (which had rumours of it's release circulating far before it's release). And as far as the iphone 4 goes, everyone new a new iphone would be coming, and it didn't take a genius to figure out it'd have a higher res back camera, an speculating it'd have a front facing camera wasn't very far fetched either - again all these these were rumoured long before release anyway
Bill gates testicle - July 7, 2011 at 9:00am
Flextronics supplied the bloody camera parts, so I'm sure they signed an agreement, that if details are revealed, they will be prosecuted. Read the first two paragraphs again, halfwit!!!
boreddrummer - July 7, 2011 at 10:49am
that's strange I'm sure I remember saying it was harsh, not that it had no legal basis.. you f*cking mong