An analyst who allegedly obtained secret information about Apple and sold it has been arrested and charged with securities fraud, conspiracy and insider trading.
John Kinnucan was charged with two counts of securities fraud and two counts of conspiracy on Friday in a U.S. District Court in Portland, Oregon.
Kinnucan is accused of leakings tips that he recieved from Apple suppliers such as SanDisk and Flextronics. ScanDisk executive Don Barnetson pleaded guilty to conspiring to divulge copany secrets.
“I conspired with a consultant to provide confidential information with respect to my employer at the time, SanDisk Corp,” Barnetson said.
Kinnucan’s clients are believed to have made approximately $1.58 million off of illegal trading based on tips he provided, while he allegedly made hundreds of thousands of dollars selling the information.
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“John Kinnucan used financial incentives, fancy meals and other inducements to curry favor with public company insiders so they would serve up their employers’ secrets,” U.S. Attorney Preet Bharara said in a statement.