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Former AT&T employee admits to leaking iPhone and BlackBerry sales figures as part of insider trading scheme

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As part of a US government investigation into insider trading, former AT&T employee Alnoor Ebrahim pleaded guilty to sharing AT&T information to stock traders who made purchases based on his information.

iphone stock 1020
iphone stock 1020

As part of a US government investigation into insider trading, former AT&T employee Alnoor Ebrahim pleaded guilty to sharing AT&T information to stock traders who made purchases based on his information. Specifically, Ebrahim said told a US district judge that he "provided insider information concerning AT&T's sales of Apple's iPhone and RIM's Blackberry products, as well as other handset set devices sold through AT&T distribution channels." Ebrahim pled guilty to one count of conspiracy to commit wire and securities fraud, with a recommended maximum sentence of two years in prison.

As part of a "expert-network ring," Ebrahim's corporate knowledge was directed by employees of specialized firms (in this case, Primary Global Research) to those running various hedge funds, who eventually made purchases and sales of stock based on the information he leaked. AT&T said in a statement that "We took this matter very seriously and cooperated fully with the authorities. The conduct alleged was clearly against our code of business conduct, and Mr. Ebrahim is no longer an AT&T employee."