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Warrant shows Jobs' involvement in iPhone prototype case

updated 06:15 pm EDT, Fri May 14, 2010

Apple calls leak threat to iPhone sales


Apple and the company's CEO, Steve Jobs, were directly involved in instigating the case which led to a raid on Gizmodo editor Jason Chen's home, an unsealed warrant reveals. On April 19th, Jobs personally contacted another Gizmodo editor, Brian Lam, and asked for the prototype's return. Lam refused without a letter acknowledging the iPhone's authenticity, citing a need to more aggressively pursue stories given poor cooperation from Apple PR in matters like the iPad launch. A day later, Apple lawyers and executives are said to have met with law enforcement.

One lawyer, George Riley, exposed Apple's motives in explaining how damaging the Gizmodo story would be. "People that would have otherwise purchased a currently existing Apple product would wait for the next item to be released, thereby hurting overall sales and negatively effecting Apple's earnings," according to Riley.

A previously anonymous informant in the case turns out to be Katherine Martinson, a roommate of Brian Hogan, the man who originally found the iPhone prototype before selling it to Chen. Hogan is said to have told Martinson that Gizmodo offered him $10,000 for the device, and also showed her a camera box with $5,000 in $100 bills. "Martinson said Hogan also told her that he will receive a cash bonus from Gizmodo.com in July, if and when Apple makes an official product announcement regarding the new iPhone," warrant documents observe.

Even as detective Matthew Broad began preparing a request to search Hogan's apartment, he is reported to have received a midnight call from Martinson, telling him that Hogan and another roommate, Thomas Warner, were removing all evidence linked to the prototype and leaving in separate cars. The trail led to Hogan's father's house, although Hogan's computer had been left at a nearby church. Warner was arrested there on outstanding misdemeanor charges, and told police that a prototype sticker fell out of his wallet at a Chevron station, and that a 512MB thumb drive and a 1GB Lexar CF card were under a bush. The hardware was later recovered, according to police.

Still to be resolved is the connection to Chen, who could face criminal charges if it is decided that he knowingly received stolen property. State and federal shield laws typically protect journalists and their sources, but not in all circumstances.




by MacNN Staff

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Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    -2

    "Jimmy Olsen" Chen should happily go to jail

    for getting his "scoop." The people need to know about Apple iPhone prototypes and Chen was just fulfilling their need. The only thing that matters to a top reporter is the "story" no matter how much damage is done. If Apple loses millions of dollars and the dude who lost the iPhone is fired, who cares. Now we all know that was a honest-to-goodness prototype iPhone. Yippee! Chen is now going to get the "Tech Story of the Year" award and his cellmate Big Bubba is going to give it to him after the lights go out.

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +22

    Who Feels Sorry for Chen and Gizmodo?

    Not me! This was not about journalism... this was about Gizmodo being "The Man!" Send them to jail.

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +1

    Who Feels Sorry for Chen and Gizmodo?

    Not me! This was not about journalism... this was about Gizmodo being "The Man!" Send them to jail.

  1. Feathers

    Grizzled Veteran

    Joined: Oct 1999

    +6

    Prototype sticker?

    I'm confused. Was there a sticker saying "prototype" somewhere on the lost/stolen iPhone that Warner or Hogan removed and Warner kept in his wallet?

  1. charlituna

    Fresh-Faced Recruit

    Joined: Sep 2009

    +13

    Chen confessed

    in his own articles he admits he paid for THE PHONE (later recanting and saying it was for the story), how much and where it came from. He knew that it did not belong to Hogan. And he knew that there was barely an attempt to return it to the rightful owner (most folks would have left it at the bar with the owner, Hogan clearly saw a chance for a free iphone and got lucky).

    As for the whole "we have to take drastic measures to get our stories" that is bull. Companies aren't legally bound to pre-release details if they don't want to. And they can legally pick and choose by what means and to what detail they do it. And nothing excuses criminal behavior, which under Cali law is what Valleywag tried to do and what Gizmodo did. Gawker got slapped down over the first stunt and will get slapped harder on the second. I will not be shocked if there's a boycott of the company for ads, review materials and even media invites by Apple and even other companies. Gawker f'd themselves and may have just killed themselves when it comes to industry news.

    Not that I mind too much given that Gizmodo has taken to banning any commenters that disagree with their opinions.

  1. Jeronimo2000

    Fresh-Faced Recruit

    Joined: Aug 2001

    -3

    Nice story

    I can smell a made-for-tv movie. I can smell daytime Emmy award. This script is basically gonna write itself.

  1. elroth

    Fresh-Faced Recruit

    Joined: Jul 2006

    +13

    wow

    Incredible details - good for Martinson for shining the light on her greedy roommates. And the stuff about dropping flash drives in the bushes - priceless.

    And Gizmodo promised to pay the thieves another $5,000 in June if there's a new iPhone release - incredible.

    Comment buried. Show
  1. apple4ever

    Fresh-Faced Recruit

    Joined: Jan 2001

    -21

    Stupid

    This whole story is stupid. Just let the guy go and move on. Its a stupid phone. IT DID NOT HURT APPLE AT ALL! Who buys an iPhone at this time of year? All the people who read Gizmodo and really, just about anybody else, knows that a new phone is on the way. And if somebody was going to buy one, then waits, what's the problem? Apple is still selling them a phone, just a little late. They get the same amount of money. In the then, nobody was harmed here. Move on.

  1. mtnrunner2

    Fresh-Faced Recruit

    Joined: Sep 2009

    +10

    Hogan deserves it

    Hogan deserves the negative stuff that's happening to him, for taking someone else's phone.

    IT'S NOT YOURS! LEAVE IT!

    Dummy.

  1. chas_m

    Fresh-Faced Recruit

    Joined: Aug 2001

    +9

    Just for the record ...

    I was a professional journalist for many years.

    The "shield" law that protects sources DOES NOT repeat DOES NOT allow journalists -- legit ones like me or bloggers like Chen -- to engage in criminal acts. Most news stories about this topic gloss over this, but it's important that the public not get the impression that you can commit, encourage or facilitate crimes if you are a "journalist" working on a "story." That's simply not true.

    From what evidence I've seen so far, Chen knowingly bought stolen property (among other illegal or questionable acts). Claiming to be a journalist isn't going to help.

    To apple4ever: kid, YOU'RE the one who's stupid. "who buys an iPhone this time of year?" About one million people a month, actually. Hogan and/or Chen could *easily* be sued for potential lost income if Apple wanted to go that path, but I imagine that after the criminal charges and the punitive "trade secrets" awards (not to mention the lawyer fees), they won't have any money left to pay those fines as well.

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