Insider Trading Probe Brings in 4 Arrests

An ongoing insider trading probe led to four arrests involving big technology companies and an “expert networking” firm Thursday.

Federal officials apprehended James Fleishman, a sales manager at an expert networking firm, and three consultants on charges of wire fraud and conspiring to provide insider trading information to investors.


“Today’s charges allege that a corrupt network of insiders at some of the world’s leading technology companies served as so-called ‘consultants’ who sold out their employers by stealing and then peddling their valuable inside information,” U.S. Attorney Preet Bharara said in a statement.

Fleishman’s employer was not initially disclosed, but according to CNNMoney.com, a spokesman for Primary Global Research says that Fleishman has worked for the firm for six years, and has been placed on leave.

Among the other arrests were Mark Anthony Longoria, 44, of Round Rock, Texas; Walter Shimoon, 39, of San Diego; and Manosha Karunatilaka, 37, of Marlborough, Mass.

Authorities also announced that former Dell global supply manager Daniel Devore pleaded guilty to wire fraud and conspiracy charges Dec. 10.

Thursday’s busts are part of a widening insider trading probe that escalated last month with raids on hedge funds. The crackdown is the government’s attempt to prevent the type of crime on Wall Street that occurred in the 2008 financial crisis.


Categorized | Law & Government
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