A few days ago, James Fleishman, a manager at a hedge fund, was sentenced to two and a half years prison time. He was accused of insider trading and was convicted for wire fraud and conspiracy. This was following a trial that lasted for two and a half weeks. According to the judge, the crime is one that appears to be on the rise. This is despite the fact that crackdowns are done on people who engage in the crime.
Over $800,000 in Earnings
In the role of an executive at Primary Global Research, a firm based in California, he made over $800,000 in three years. When James Fleishman was being sentenced for his actions, the District Judge of the United States of America, Jed Rakoff, said that there was a requirement for deference. This happened in September. Based on a statement by Ethan Balogh, the defense lawyer, Fleishman had worked openly and honestly without intentions of stealing.
In a government probe that was carried out a few weeks ago, many, including James Fleishman were charged. The probe was done on consultants who were considered experts in their area of work. One of their key responsibilities was to connect those working in public companies with powerful managers of hedge funds.
Balogh States Fleishman was an Honest Salesman
Balogh stated that James Fleishman had no reason to believe people were misappropriating information or stealing. He continued to work as an honest salesman. According to prosecutors, the conspiracy in which Fleishman was involved, gave managers of hedge funds, the chance to find out about confidential sales forecast at Apple and features of the iPhone. In addition, they also uncovered details about K48, the name used at Apple for the iPad.
US Attorney Preet Bharara mentioned that people formed a corrupt network on the inside of a few of the leading companies in the technology industry. These people took on the role of consultants who eventually sold out employers. They resorted to stealing of important inside information and selling it.