(Updates with court filing excerpt in third paragraph.)
Dec. 15 (Bloomberg) -- James Fleishman, the former Primary Global Research LLC executive convicted of conspiracy as part of a U.S. crackdown on insider trading of consultants and fund managers, asked for a sentence of 12 months’ home detention.
Fleishman, 42, of Santa Clara, California, is to be sentenced Dec. 21 by U.S. District Judge Jed S. Rakoff in Manhattan. He asked for detention rather than prison in a court filing yesterday by his lawyer, Ethan A. Balogh
“Mr. Fleishman does not present as a rogue employee, secretly stealing his employer’s property for personal gain at the expense of his employer, but instead as a man who worked for essentially what became a rogue enterprise in which a legitimate business model was structured in a way that misappropriation of third-party information was likely to occur,” Balogh said in court papers.
Company management “sought to shield itself from liability” when employees or consultants passed confidential information, the attorney wrote.
Fleishman was convicted in September of two conspiracy charges for a scheme to obtain and pass confidential information from technology company employees moonlighting as consultants for Mountain View, California-based Primary Global, a so-called expert-networking firm.
Cooperating witnesses said the nonpublic information was passed to Fleishman’s clients, fund managers who paid Primary Global, also known as PGR, for consultation calls.
At least four cooperating witnesses took the stand during the 2 1/2-week trial.
Bob Nguyen, a former Primary Global analyst who pleaded guilty, testified that he knowingly passed confidential company information to Fleishman from consultants.
Also testifying for the prosecution about passing tips to fund managers during Primary Global consulting calls were Daniel Devore, a former global-supply manager of Round Rock, Texas- based Dell Inc., and Mark Anthony Longoria, a former Advanced Micro Devices Inc. manager.
Steven Hwang, an ex-Samsung Electronics Co. employee, admitted passing shipping data for Apple Inc.’s iPad components months before the tablet debuted.
All except Hwang pleaded guilty.
Balogh argued that his client was an “aider and abettor,” who continued to “sell the firm’s services nonetheless” after learning that some consultants like Longoria and Devore were providing information during consulting sessions.
Earlier this month, Rakoff rejected Fleishman’s request for a new trial or to reverse his conviction on the ground that prosecutors failed to establish that any of the acts taken to further the scheme occurred in New York.
Fleishman faces as long as 20 years in prison on the most serious count, according to prosecutors.
The case is U.S. v. Nguyen, 11-cr-32, U.S. District Court, Southern District of New York (Manhattan).
--Editors: Charles Carter, Fred Strasser
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