Former AT&T exec leaked iPhone, RIM info to investors

Alnoor Ebrahim, a former AT&T employee, admitted on Monday that he leaked company secrets to investors, such as sales numbers for Apple's iPhone, reports Reuters. Ebrahim entered his guilty plea to one count of conspiracy to commit wire and securities fraud in Manhattan.

Ebrahim's plea agreement means federal prosecutors will recommend a maximum sentence of two years in prison. "I provided insider information concerning AT&T's sales of Apple's iPhone and RIM's Blackberry products, as well as other handset set devices sold through AT&T distribution channels," Ebrahim told U.S. District Judge Paul Oetken.

The company secrets went to traders who illegally bought shares of companies like Apple based on the leaked information.

Ebrahim is just the latest person to plead guilty in a crackdown on insider trading by the United States government. On Friday, former Goldman Sachs Group board member Rajat Gupta was convicted, one of the U.S. government's biggest targets, according to Reuters.

Representatives of AT&T were quick to distance the company from Ebrahim's actions. "We took this matter very seriously and cooperated fully with the authorities," said AT&T spokesman Marty Richtman. "The conduct alleged was clearly against our code of business conduct, and Mr. Ebrahim is no longer an AT&T employee."

Source: Reuters

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4 Comments

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wow.. only 2 years.. its guys like this that destroy the finance business.. They should have to pay a massive fine that is like 10 times what they got illegally.. the only thing that drives these guys is cash..

Lachlan said,
wow.. only 2 years.. its guys like this that destroy the finance business.. They should have to pay a massive fine that is like 10 times what they got illegally.. the only thing that drives these guys is cash..
He told investers that Apple phones were outselling RIM.. this wasn't exactly a revelation, even at the time lol

Also it's not guys like this that destroyed the financial system, it's the ones that LIED and make things out to be better than they were that did..

Sure, what he did was wrong, and illegal, but there was no actual harm done, a few people may have made some more money, but he wasn't covering up a company about to collapse and telling people everything was fine or something..

Ryoken said,
He told investers that Apple phones were outselling RIM.. this wasn't exactly a revelation, even at the time lol

Also it's not guys like this that destroyed the financial system, it's the ones that LIED and make things out to be better than they were that did..

Sure, what he did was wrong, and illegal, but there was no actual harm done, a few people may have made some more money, but he wasn't covering up a company about to collapse and telling people everything was fine or something..

Agreed. I find it rather troubling how little some people understand how our economy works and what got us into this problem. THIS was not it... I'm afraid we haven't learned anything either, so we'll likely repeat our mistakes and just point the fingers at someone else who wasn't involved...

M_Lyons10 said,

Agreed. I find it rather troubling how little some people understand how our economy works and what got us into this problem. THIS was not it... I'm afraid we haven't learned anything either, so we'll likely repeat our mistakes and just point the fingers at someone else who wasn't involved...

What?!? Just because it didn't get us into the last recession doesn't mean its a not big deal. I don't think you understand how major releasing just these small information to investors are when it is not public.... It's like playing on a poker table but someone has a camera.

As a side note, you can search for a NYTimes article about insider trading and how it's basically the norm now in Wall Street.