Analyst charged with insider trading and fraud after leaking Apple sales data
A research analyst and a former executive who revealed insider information about Apple’s sales have both been charged, reports Reuters. Analyst John Kinnucan on Friday was charged with two counts of securities fraud, two counts of conspiracy and one count of insider trading from a civil case filed by the U.S. Securities and Exchange Commission. Between 2008 and 2010, Kinnucan allegedly paid insiders with cash, trips and other incentives for inside information regarding Apple. Kinnnucan then sold the information to hedge funds for hundreds of thousands of dollars. Separately, former SanDisk executive Don Barnetson pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud. “I conspired with a consultant to provide confidential information with respect to my employer at the time, SanDisk Corp,” Barnetson said. Barnetson could faces up to five years in prison but could get leniency for his “substantial cooperation.” Kinnucan could faces up to 20 years in prison on each of the securities fraud counts and one of the conspiracy counts, and up to five years on the other conspiracy count.