Insider trading tips about Apple products, specifically the new iPhone and the iPad, are a major part of the complaint against Walter Shimoon – VP of Business Development at Flextronics, who was arrrested this morning in connection to the FBI insider trading probe.
The complaint against him details how Shimoon revealed non-public information about Apple to a client – who was also an FBI cooperating witness – about which he had signed a non-disclosure agreement.
Here is what the FBI recorded Shimoon saying about the iPad:
“They have a code name for something new. It’s, it’s totally.. it’s a new category altogether. And, uh, I speculate, it doesn’t have a camera in it, what I figured out. So, I speculated that it’s probabl a reader… Something like that.”
And he also had a lot to say about the iphone:
Shimoon told CW-2 that Apple was going to be producing a new “iphone” cellular telephone that would be “coming out early next year,” and that the new iphone “is gonna have two cameras.” When Shimoon told CW-2 this information, CW-2 asked when the new iphone was coming to market. Shimoon replied: “I was being asked the same question by my boss this morning. Um, ’cause we’re working with them on the camera. They [Apple], you know, they;re very secretive, right?… So I don’t have an exact time frame but i’ve concluded we;ll start building modules probably in March.”
“It’ll be a neat phone ’cause it’s gonna have five megpixel auto-focus camera and it will have VGA forward-facing video.”
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.