Follow Along As Accused Insider Trading Walter Shimoon Attempts To Crack Steve Jobs' Code

Author:
Updated:
Original:

Yesterday afternoon, former Primary Global consultant Walter Shimoon pleaded guilty to passing inside information to his hedge fund clients. According to court documents, Kingdom Ridge Capital made about $560,000 in October 2009, based on Shimoon's tips about Apple. We now know that the expert network analysts' material non-public information was about the iPhone 4 and the iPad, though at the time, in the case of the latter product, Shimoon struggled to explain what he was talking about. Here's how he described the iPad, which had not yet been unveiled, to Kingdom:

"They [Apple] have a code name for something new ... It's ... It's totally ... It's a new category altogether... It doesn't have a camera, what I figured out. So I speculated that it's probably a reader. ... Something like that. Um, let me tell you, it's a very secretive program ... It's called K, K48. That's the internal name. So, you can get, at Apple you can get fired for saying K48." T

Wiretap: The Apple secrets that Walter Shimoon sold [Fortune]
Tenth Expert-Network Guilty Plea Produces Allegation Against Hedge Fund [FINalternatives]

Related

News

Accused Insider Trader Doug Whitman Made A Halfhearted Attempt At The Faux Sympathy Route In Pumping Depressed Informant For Inside Information

Shortly before losing his patience and wondering aloud what the hell she was good for if not bringing him hot tips. FBI informant Roomy Khan, 53, told jury that she gleaned illegal tips on Polycom’s earnings from Sunil Bhalla, a former Polycom exec who was placed on leave in 2009. She then passed those tips to Whitman [Capital founder Doug Whitman] and a handful of other hedgie pals, including convicted Galleon Group co-founder Raj Rajaratnam and her bosses at Trivium Capital Management...“You know what would make you feel better?” Whitman asked Khan when she started complaining about her lot in life. “Calling Sunil and getting a good call on Polycom and being able to short it.” “Yeah, but I could go to jail for doing that, too,” Khan said. “You’re not going to be a slimeball, what do I want to talk to you for,” Whitman said. Roomy Not Slimy [NYP]