Insider trading is a very serious offense. Normally, personnel in notable positions within companies indulge in this since they are the ones who have access to important data. U.S. government recently started a crackdown on insider traders when it was learned that traders were provided information from inside of a number of companies to enable them to buy profitable shares.
Alnoor Ebrahim is the latest person who has been found to be guilty of insider trading. Before him, a number of other high-profile personnel have been convicted of the same crime including a board member of Goldman Sachs Group, Rajat Gupta.
Ebrahim is a U.S. citizen who was also a part of a group which collectively indulged in divulging valuable insider information to traders of hedge funds. In his guilty pleading, Ebrahim stated, “I provided insider information concerning AT&T’s sales of Apple’s iPhone and RIM’s (Research In Motion Ltd (RIM.TO)) Blackberry products, as well as other handset set devices sold through AT&T distribution channels.”
For now, he himself has pleaded that he is guilty of at least one count of wire and securities fraud. A plea agreement had been reached with Ebrahim as a result of which he confessed to all this. As a result of this plea agreement, prosecutors are seeking two years imprisonment for Ebrahim.
According to an AT&T spokesperson, ‘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.’
Source: Reuters
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