Alleged Inside Trader Shimoon On iPad In 2009: "It's, It's Totally… It's A New Category Altogether"

apple insider trading

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.”

Here’s the full complaint >

Here are more details about this morning’s arrest >

Here’s a list of the firms and individuals already involved in the massive insider trading probe >

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