SAN DIEGO -- A former Flextronics manager accused of insider trading has been denied bond after prosecutors asserted he is a flight risk.

Walter Shimoon today reportedly will make a formal request for bail in a San Diego courtroom seeking his release on bond. The government is expected to continue to object, claiming the defendant was at the heart of a "massive fraud involving more than $10 million" involving the sharing of confidential information regarding Apple, one of Flextronics' customers.

A judge denied Shimoon's initial bail request despite his lawyer's plea that he is not a risk to flee because his wife is a university professor and eight months pregnant.

Shimoon was arrested Dec. 16 on charges of wire fraud and conspiracy for allegedly providing inside information about their companies to clients of an outside consulting company that provides experts to investors. According to the complaint, he reportedly had signed non-disclosure agreements.

He was caught after investigators made tapped the phones of Shimoon and others that were allegedly in on the scam.

Other defendants include former or current employees at AMD and Taiwan Semiconductor Manufacturing Co.

Flextronics has since fired Shimoon, whose title at the time was senior director of business development.

• Prev
• Next