NEW YORK, June 18 A former AT&T employee
admitted on Monday to sharing company secrets such as sales
numbers for Apple Inc's iPhone to traders who illegally
bought shares on the information.
Alnoor Ebrahim, 57, a U.S. citizen born in Tanzania, is the
latest person to plead guilty in the U.S. government's crackdown
on insider trading, which claimed its biggest target to date on
Friday - former Goldman Sachs Group Inc board member Rajat
Ebrahim was part of a so-called expert-network ring where
some employees of specialized firms such as Primary Global
Research (PGR) helped funnel corporate secrets from consultants
at companies to hedge funds.
"I provided insider information concerning AT&T's sales of
Apple's iPhone and RIM's (Research In Motion Ltd )
Blackberry products, as well as other handset set devices sold
through AT&T distribution channels," Ebrahim told U.S. District
Judge Paul Oetken in Manhattan.
Ebrahim pleaded guilty to one count of conspiracy to commit
wire and securities fraud. Manhattan federal prosecutors, in a
plea agreement with the defense, recommended that Ebrahim be
sentenced to a maximum of two years in prison.
"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."
An attorney for former Silicon Valley sales manager James
Fleishman, who is imprisoned on conspiracy charges, identified
Ebrahim as a PGR consultant in court documents last year.
The case is U.S. v. Alnoor Ebrahim, U.S. District Court for
the Southern District of New York, case number unknown.