| July 1
July 1 A former manager at Advanced Micro
Devices Inc and a former executive at Flextronics
International Ltd avoided prison time on Monday after
cooperating in a broad government investigation of insider
Mark Anthony Longoria, a former AMD production manager, and
Walter Shimoon, formerly of Flextronics, were both sentenced by
U.S. District Judge Jed Rakoff in Manhattan to time served and
two years supervised release.
Rakoff also ordered the defendants to pay forfeiture in the
amounts of $170,000 for Longoria and $45,500 for Shimoon.
The defendants had pleaded guilty in 2011 to charges that
they received thousands of dollars from expert network firms to
give inside information to hedge funds.
They agreed to cooperate with the government in an insider
trading probe that has since October 2009 resulted in criminal
charges against 81 people.
Rakoff said he agreed to leniency "not because this court
does not think the crimes are serious, but because the very
nature of the crime and very nature of its discovery depend on
He said a "price had to be paid" in sentencing to secure
Longoria may still be called to testify in the government's
insider trading case against Michael Steinberg, a fund manager
at billionaire Steven Cohen's SAC Capital Advisors who has
pleaded not guilty to insider trading, court papers show.
Many of those charged were caught during investigations of
expert networking firms, which connect high-end investors with
Longoria, 46, had since 2006 been consulting for expert
networking firm Primary Global Research after being laid off
from Western Digital Corp.
After joining AMD, Longoria began giving confidential
information about his employer to clients and Primary Global,
earning $170,000 between 2006 and 2010 and becoming Primary
Global's most frequently used consultant, prosecutors said.
He testified at the trial of former Primary Global executive
James Fleishman, who was sentenced in December 2011 to 2-1/2
years in prison.
Shimoon, 41, began consulting with Primary Global in 2008
while working as senior director of business development at
Flextronics' VistaPoint unit, and had a separate consulting
agreement with John Kinnucan, who ran Broadband Research.
According to prosecutors, Shimoon disclosed information
about Flextronics and customers including Apple Inc and
Cisco Systems Inc, earning $59,725 for his efforts.
Prosecutors said Shimoon's cooperation enabled them to bring
a case against Kinnucan, who pleaded guilty to securities fraud
and conspiracy charges and was sentenced in January to more than
four years in prison.
Longoria and Shimoon are still cooperating in investigations
of hedge fund professionals linked to Primary Global and who
have yet to be charged, prosecutors said last week.
The defendants' lawyers declined to comment.
The case is U.S. v. Nguyen, U.S. District Court, Southern
District of New York, No. 11-cr-00032.
(Reporting by Nate Raymond in New York; Editing by Phil