Ex-Samsung manager admits passing confidential information on Apple's Ipad

EX-SAMSUNG EMPLOYEE Suk-Joo Hwang passed confidential information regarding Apple's Ipad to an executive of Primary Global Research LLC.

In the insider trading trial of Primary Global Research executive James Fleishman, Hwang, who had worked at Samsung for 14 years, told the court that he had lunch with Fleishman and a hedge fund manager whom he identified as "Greg". In that conversation, Hwang said, "One particular thing I remember vividly was that I talked about the shipment numbers of Apple, it was about Ipad. This is in December 2009, before it came out with the tablet PC, they didn't know the name then, so I talked to them about the tablet shipment estimates in that meeting."

According to Bloomberg, Fleishman has been charged with two counts of "conspiracy for facilitating a scheme in which employees at public companies passed confidential information to fund manager clients of Primary Global [Research]" - essentially insider trading.

Samsung was a major components supplier for Apple in its Ipad and the information Hwang handed over caused the fund manager to be "very excited". Hwang claims he even told the duo not to pass on this information.

Hwang worked for Primary Gobal Research between 2004 and 2010 earning $38,000 for his work as an "expert-networking consultant". For testifying at the trial, Hwang was granted immunity from prosecution.

Should Hwang's testimony be truthful - and one would have to assume that by giving it under oath it is - then this is likely to further damage relations between Apple and Samsung. While no firm can control what all of its employees get up to, given that Hwang was working for Primary Global Research for six years and was even promoted by Samsung, Apple is likely to seek greater reassurances from its suppliers that its confidential data doesn't end up with competitors.

In this case Fleishman and fund manager "Greg" were seemingly more interested in making a quick buck from trading Apple's and supplier's shares. However their thirst for information and desire to play Gordon Gecko won't have done Samsung's OEM business any good. µ