Former Samsung Manager Admits To Leaking iPad Supply Data To Hedge Fund Manager

Suk-Joo Hwang, a US-based Samsung employee, a 14-year veteran of Samsung, testified in a federal court on Wednesday after being granted immunity from prosecution, Bloomberg BusinessWeek reports. He admitted to having lunch in Mountain View, Calif., with Primary Global Research executive James Fleishman and a hedge fund manager and providing confidential information about Samsung’s shipment of LCD screens to Apple for the iPad.

“Apple’s plans to use Samsung screens in a new tablet device that was to become the iPad – four months before it was released.”  confirmed  by Suk-Joo Hwang .

Samsung served as one of the suppliers for the original iPad. Apple is expected to be the South Korean electronics giant’s largest customer this year with an estimated $7.8 billion in orders.

Fleishman faces 25 years in prison if convicted of the two counts of conspiracy he has been charged with. He was arrested last December as part of a wide-ranging Securities Exchange Commission probe investigating the practice of expert networks.

“In fact, I said, ‘Please, just keep this to yourself,’” Hwang testified while reenacting the scene. “I remember after I said this, James, he was nodding his head.”

A former employee of an Apple supplier was arrested in connection with the probe. Walter Shimoon, who served as senior director of business development at Flextronics, is accused of providing “highly confidential” sales forecasts for an unreleased iPhone, as well as leaking information about the iPad. Unlike Fleishman, who has pleaded not guilty, Shimoon has pleaded guilty to charges of conspiracy to commit wire fraud and security fraud.

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