A former manager at Apple supplier Flextronics is facing insider trading charges, according to Bloomberg.
Walter Shimoon and two others were arrested following a nationwide investigation into illegal trading in hedge funds conducted by the Securities Exchange Commission, the Federal Bureau of Investigation and the U.S. Attorney for the Southern District of New York.
Prosecutors allege Shimoon was paid more than $22,000 to pass inside information about new Apple products and sales forecasts to investors. His job made him privy to details about projects that became the iPad and the iPhone 4, which he shared with clients of Primary Global Research in Mountain View, Calif.
The complaint indicates investigators gathered evidence via wiretaps on the phones of those involved, as well as with consensual recordings of phone conversations.
The defendants face up to 20 years in prison if convicted. An Apple representative declined to comment on the case.