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Two San Diegans Among Four People Arrested On Suspicion Of Insider Trading

— Two San Diego men were among four people arrested Thursday on suspicion of conspiring to distribute confidential financial information, amid a nationwide crackdown on insider stock trading.

James Fleishman, 41, was charged with conspiring to provide inside information to clients, including hedge funds, according to Preet Bharara, U.S. Attorney for the Southern District of New York, where a federal complaint was unsealed today.

According to the complaint, Fleishman arranged for clients, including hedge funds, to speak with consultants for companies, knowing the consultants would provide confidential information.

Daniel Devore, formerly a global supply manager for Dell Inc., who worked as a consultant for the firm, pleaded guilty last week to wire fraud and conspiracy to commit wire and securities fraud, prosecutor said.

While employed at Dell, Devore provided inside information about Dell and its suppliers, according to the complaint.

Also arrested today was Walter Shimoon of San Diego, a senior director of business development for Flextronics International Ltd.

Flextronics supplied Apple Inc. with electronic components, including camera and charger components for its iPhone cellular telephones and iPod portable media players, according to a federal complaint.

Between January 2008 and June 2010, Shimoon, 39, was paid more than $22,000 for allegedly providing inside information about Flextronics and Apple, according to the complaint.

Also arrested today were Mark Anthony Longoria, 44, a supply chain manager for Advanced Micro Devices Inc. of Round Rock, Texas, and Manosha Karunatilaka, 37, of Marlborough, Mass., an account manager for Taiwan Semiconductor Manufacturing Company Inc.

Both are also accused of accepting money to provide inside information.

"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,'' said Preet Bharara, U.S. Attorney for the Southern District of New York, where a federal complaint was unsealed today.

"The detailed allegations in the complaint, along with the guilty plea unsealed today, describe criminal conduct that went well beyond any legitimate information-sharing or good faith business practice."

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