Friday, September 16, 2011

Bribes to the sales figures iPad

The trial of analysts involved in trafficking of confidential information on Apple on track with details on the procedure of the protagonists. To situate the context, in November, the U.S. stock market watchdog had launched an investigation against several analysts and investors
who could have benefited from confidential information, the benefit of their customers and thus influence the course of certain actions including that of Apple, but Dell and AMD (see Analysts indicted and analysts suspected of insider trading). Among them there were several employees of the firm Primary Global Research, including James Fleishman indicted and charged with facilitating these exchanges.
Businessweek is reporting today a hearing in the trial with the testimony of a former executive of Samsung, Hwang Suk-Joo who worked in the U.S. subsidiary (he spent 14 years in the Electronics Division Korean group).
The man, who has been granted immunity in exchange for his cooperation with the law, says a dinner in Mountain View, California with James Fleishman and another investor (known only by his nickname of 'Greg'). During the feast, part of Samsung revealed some details about the iPad. It was December 2009, the rumor mill about a possible Apple tablet was thriving, but many were unknown until the reality of the future product.
Four months before Steve Jobs unveils the iPad, Suk-Joo Hwang revealed to his two interlocutors that Samsung was among the suppliers of its LCD screen, with Seiko and LG Display "One thing in particular I remember still well is that I told them about numbers of deliveries for Apple and it was about the iPad. It was December 2009, before they launch the tablet PC, they [the analysts, ndr] did not know the name at the time, so I talked to them estimates delivery of this shelf ".
When asked the judge on how Fleishman responded and the second person, Hwang said, "They were aware of anything" and that "Greg" has been "very excited" to these confidences. As part of Samsung, however, invited his counterparts at the discretion of keeping the information for them, what Fleishman has nodded.
However, as soon as he had released these figures and this recommendation, Hwang said he observed a man sitting at a nearby table stared at him. He said he feared that it was an Apple employee and talking too loud. He then returned his badge Samsung to conceal his identity and that of his employer.
Over the weeks this informant has fed a growing concern about the risk of being discovered. Since shortly after the lunch, colleagues informed him that Samsung had lost the contract for the screen "I thought, 'This guy was Apple and they told' I was scared" .
Hwang, however, received a promotion in February 2010, but he informed his contacts at Primary Global Research that he wanted to end their arrangement. In response it was proposed to work in a completely anonymous and bonuses as a "consultant" would be increased to $ 200 per hour to $ 350 (€ 253). This collaboration will continue until August 2010. In October of that year, the FBI knocked at his door to question him about his links with the investment firm in June 2011 and the Samsung licencia.
During his testimony, Suk-Joo Hwang admitted collaborated for six years with Primary Global Research, with the key saves $ 38,000 (€ 27,000). This trial is not over, Hwang still has to testify. James Fleishman for his part has pleaded not guilty, he faces up to 25 years in prison says Businessweek.
The case of sale of confidential information from Apple is not unique. Three people in China have been sentenced in June to be released and made plans for the future trade iPad 2. Accessory manufacturer had wanted to speed its competitors and prepare cases. A former employee of Foxconn and one of R & D had his task easier (read prison for theft schemes iPad 2).

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