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Former AT&T exec admits to leaking iPhone, BlackBerry figures to traders

post #1 of 16
Thread Starter 
An ex-AT&T executive on Monday pleaded guilty to having provided vital inside information like Apple iPhone and RIM BlackBerry sales numbers to hedge fund operators who made illegal trades using the information.

Alnoor Ebrahim, who was described as director of channel marketing and sales operations for AT&T Mobility's wireless group in a report from The Wall Street Journal, admitted that he worked as a consultant for "expert-network" group Primary Global Research LLC and shared private corporate information with the firm between 2008 and 2010. In return for his insider insight Ebrahim was paid about $180,000.

"I knew that what I was doing was wrong," Ebrahim said. "I knew I breached my fiduciary duty to AT&T."

Ebrahim, a naturalized U.S. citizen originally from Tanzania, entered a guilty plea to one count of conspiracy to commit securities fraud and wire fraud. The trial is an extension of a previous insider trading case involving former PGR sales manager James Fleishman who is currently appealing a two-and-a-half year sentence over conspiracy charges.

The news is the latest development in an ongoing government crusade against insider trading and "expert-network" rings. In the illegal system, firms like PGR charge a fee to connect hedge fund managers and other traders with industry experts who have access to private corporate information. Most recently the initiative caught its biggest fish yet when former Goldman Sachs Group Inc and Procter & Gamble Co. board member Rajat Gupta was found guilty of insider trading on Friday.

As part of an FBI probe, Ebrahim was caught on tape dispensing sensitive information to Karl Motey, a former independent financial consultant who pleaded guilty to similar insider trading charges in December 2010. Motey also testified at the Fleishman trial and has worked with government in the investigation. During the recorded 2009 phone call, Ebrahim is heard confirming that AT&T was on pace to sell 2.2 million iPhones in the fourth quarter. AT&T reported in January 2010 that it had activated 3.1 million iPhone 3GS handsets in the fourth quarter of 2009.

iPhone 3GS
Ebrahim admitted to leaking sales information regarding AT&T's iPhone 3GS.


At the Fleishman trial, Ebrahim's former boss and AT&T Director of Product Marketing Gary Duffy outlined the damage a lead of this nature could have on the telecom.

"Well, it's harmful if the companies that we kind of partner with, like a RIM or an iPhone, if they don't believe that the information that we're sharing together to bring a device to market, if they don't believe that that is going to be held in confidence and that we are going to release information jointly and at an agreed upon time, then my sense is they're going to be very apprehensive to want to launch really important, cool devices with us," Duffy said.

The expert-network case is ongoing and 63 of the 69 suspects charged have pleaded guilty or been convicted of their respective charges. Ebrahim's sentencing is scheduled for Oct. 25.
post #2 of 16
Yes, this is illegal, but why couldn't he have at least leaked Samsung numbers? At least then we'd have part of the truth…

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #3 of 16
Quote:
Originally Posted by Tallest Skil View Post

Yes, this is illegal, but why couldn't he have at least leaked Samsung numbers? At least then we'd have part of the truth…

 

question-2736099.jpg

post #4 of 16
Quote:
Originally Posted by AppleInsider View Post

The expert-network case is ongoing and 63 of the 69 suspects charged have pleaded guilty or been convicted of their respective charges. Ebrahim's sentencing is scheduled for Oct. 25.

I'm glad we finally have an administration that believes in enforcing the law against business people who commit crimes.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #5 of 16

THROW AWAY THE KEY.

 

The White collar crime in this country needs to start now and end with most of Wall Street, the bankers, and half of the politicians.

post #6 of 16
Quote:
Originally Posted by jragosta View Post

Quote:
Originally Posted by AppleInsider View Post

The expert-network case is ongoing and 63 of the 69 suspects charged have pleaded guilty or been convicted of their respective charges. Ebrahim's sentencing is scheduled for Oct. 25.

I'm glad we finally have an administration that believes in enforcing the law against business people who commit crimes.

I will agree with you when I see video of Lloyd Blankfein being perp-walked into a squad car.  The big fish basically have impunity.

post #7 of 16

Bye!  Enjoy your new boyfriend, Bubba.  Not that there's anything wrong with that!

post #8 of 16
Quote:
Originally Posted by jragosta View Post


I'm glad we finally have......

Dangerously close to politics here.  An edit in order or shall I retort?  Mods?

post #9 of 16

Go ahead and retort.  What do you have to say?

post #10 of 16
...meanwhile these guys will do their time and still be rich, strip their assets and leave them with nothing but the prison clothes they get released in.
Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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post #11 of 16
Quote:
Originally Posted by frankie View Post

Go ahead and retort.  What do you have to say?

You're neither a mod nor jragosta... jragosta always has good stuff to contribute and is one of the few I come here to read.
post #12 of 16
Quote:
Originally Posted by quinney View Post

I will agree with you when I see video of Lloyd Blankfein being perp-walked into a squad car.  The big fish basically have impunity.

I always hear such venom about that company, but I've never once seen a single specific claim for why Blankfein should be 'perp-walked.' Can you name one or two illegal things that (you think) Goldman did?

 

If you can't, could you please shut up on this issue.

post #13 of 16
I am aware that there is an argument made that insider trading is nothing more than the normative scaling of free market knowledge. Those who can pay for their inside information are simply using a different form of "market research" that other investors elect not to use.

That said, I favor much harsher penalties. Nobody lets a bank robber pay back half of what s/he stole and cop a plea. I am for RICO actions and full jury trials for each and every one of these market-destroying parasites. Freeze their assets, let them be represented by the Public Defender (or, pro per, as most are attorneys), then forfeit all of their assets leaving them and their families destitute, and lock the thieves up for the rest of their worthless lives. Then, go after their trading partners and do the same.

The law is in place. We simply don't use it where the highest form of Racketeering Influenced and Corrupt Organizations exist.

We do freeze assets of lesser criminals and leave them to the PD for their defense. Imagine the chill that all of those high-fee white-collar criminal defense counsel would feel, facing a freeze? And, I'm a trial lawyer.

This is but a small step towards properly regulating the market. We need micro-fees per share traded. That will go a long way towards cutting into the hedge funds pump & dump on intraday trading. Make the VIX obsolete!
post #14 of 16
Quote:
Originally Posted by hill60 View Post

...meanwhile these guys will do their time and still be rich, strip their assets and leave them with nothing but the prison clothes they get released in.

Don't ever release them. Trust me, the cost of incarcerating Madoff for the rest of his life is a fraction of the cost of one day of his thievery. And our latest Ponzi wizard, at $7 Billion, Allen Stanford, has to serve only 110 years (the Judge wouldn't give him the max of 230 years).
post #15 of 16
Quote:
Originally Posted by Bought_it@AAPL View Post


Don't ever release them. Trust me, the cost of incarcerating Madoff for the rest of his life is a fraction of the cost of one day of his thievery. And our latest Ponzi wizard, at $7 Billion, Allen Stanford, has to serve only 110 years (the Judge wouldn't give him the max of 230 years).


but the 110 years is a bit more than max 44 months Stanford's lawyers were asking after the conviction...

post #16 of 16
Quote:
Originally Posted by GregInPrague View Post


but the 110 years is a bit more than max 44 months Stanford's lawyers were asking after the conviction...

That's true. I'd have been satisfied if the Judge gave him just 30 days - so long as they were spent in an energized electric chair.
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