Walter Shimoon made a mere $200 each time he picked up the phone to tell Primary Global’s hedge fund clients information about, for example, how many new-generation iPhones Apple would be producing in 2009.
So you might not think accepting the call would be worth it, especially for someone who has a pretty nice gig working for Flextronics International, a Singapore-based company making cameras for Apple devices, given how it might be recorded and, maybe, he could end up in jail.
But a Primary Global manager assured Shimoon over the phone that the calls would not be recorded. And even though Shimoon wasn’t aware that the conversation they were having at that very moment was being recorded, when the Primary Global manager, who isn’t named, told Shimoon,
“We don’t record, um, or monitor your call between you and your clients.”
You’d think Shimoon would go with an answer like, “Oh well that’s OK, it’s not like I’m saying anything about proprietary information or anything.” Just in case.
Instead, he said:
“That would really suck if you recorded all the calls.”
The FBI was listening in and of course, that’s one of the reasons Walter Shimoon was arrested recently (he was granted bail yesterday).
The other reasons?
Shimoon (allegedly) gave hedge funders the tip about how many new generation iPhones Apple would produce in 2009, and sales figures and product road maps, such at release dates for the iPad.
The tips Shimoon gave have understandably jeopardized Flextronic’s relationship with Apple.
The others involved in the latest insider trading scandal are in similar hot pots.