updated 11:45 am EDT, Tue June 19, 2012
Formed part of expert-network ring committing wire and securities fraud
A former employee of AT&T admitted to helping insider traders by surreptitiously passing iPhone sales figure and other company secrets. Alnoor Ebrahim, originally from Tanzania, pleaded guilty in a court in Manhattan for his part in an expert-network ring, where secret information was transferred from large companies to hedge funds, writes Reuters.
Ebrahim shared insder information relating to AT&T sales for the iPhone and BlacBberry handsets, along with other phones sold by the telecom company. The guilty plea for one count of conspiracy to commit wire and securities fraud formed part of an agreement with Manhattan federal prosecutors, which in return recommended a maximum sentence of two years in prison.
The case forms part of a long-term US government crackdown on insider trading, which saw former Goldman Sachs board member Rajat Gupta found guilty on four counts and a potential prison term of 25 years. Ebrahim was identified as part of the criminal group after being identified by an attorney for Silicon Valley sales manager James Fleishman, who was imprisoned on similar counts last year.