Ex-AT&T Employee Faces Two Years in Prison After Admitting Role in Insider Trading Case

By Ed Silverstein June 20, 2012

An ex-AT&T employee may wind up in prison after admitting he provided confidential sales data about Apple and Research In Motion, later used as insider information.

The defendant, Alnoor Ebrahim, entered a guilty plea this week in federal court to a count of conspiracy to commit wire and securities fraud, BGR News reported.

The AT&T-related data was used by traders who later bought shares of stock, according to Reuters. Among the secret information was a statement about how many iPhones AT&T expected to sell in a given quarter.

"I 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 said before NY federal Judge Paul Oetken.

Ebrahim earned about $180,000 in exchange for sharing the confidential information. He got the money while working as a consultant for the expert-network firm called Primary Global Research LLC – while working concurrently for AT&T.

Prosecutors want Ebrahim to be sentenced to two years in a federal prison.

"I knew that what I was doing was wrong," Ebrahim said in a court statement. "I knew I breached my fiduciary duty to AT&T."

The guilty plea is part of a larger insider trading prosecution coordinated by federal authorities.

Last week, Rajat Gupta, a former board member at Goldman Sachs Group, was convicted on charges of insider trading. After a lengthy federal trial, Gupta was convicted on four counts of conspiracy and securities fraud. Gupta allegedly leaked corporate secrets, according to news reports carried by TechZone360.

The former board member allegedly gave insider information to Galleon Group hedge fund founder Raj Rajaratnam, who took advantage of the information by making trades at a profit, according to federal prosecutors.

The ongoing crackdown on insider trading has led to 63 of the 69 defendants charged in the inquiry to enter guilty pleas or being convicted of criminal charges.

Edited by Braden Becker

TechZone360 Contributor

Related Articles

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More

Contribute Your Brain Power to The New Intelligence

By: Paula Bernier    6/28/2018

The three events that are part of The New Intelligence are all about how businesses and service providers, and their customers, can benefit from artif…

Read More

TMC Launches The New Intelligence - an Unparalleled AI and Machine Learning Conference & Expo in Florida

By: TMCnet News    6/28/2018

TMC announced the launch of The New Intelligence conference and expo - The Event Powering the AI Revolution. This exciting new event will take place o…

Read More