Walter Shimoon, a former Flextronics International Ltd. (FLEX) executive who pleaded guilty last year to insider trading, has settled a related civil case with the Securities and Exchange Commission, according to court records.
Shimoon won’t pay a civil penalty because he is cooperating with the agency’s investigation of insider trading, according to a filing today in federal court in Manhattan. He agreed to be “precluded from arguing” in the future that he didn’t violate federal securities laws.
Shimoon pleaded guilty in July to conspiracy and securities fraud. At the time, Shimoon told a judge that he passed illegal tips to John Kinnucan, founder of Broadband Research LLC, while working as a consultant for Primary Global Research LLC and Broadband Research. Shimoon is also cooperating with prosecutors.
Kinnucan, whose Portland, Oregon-based firm provides research on technology companies to hedge funds and mutual funds, was arrested on insider-trading charges last week.
Henry Mazurek, Shimoon’s lawyer, declined to comment on the settlement.
The case is U.S. v. Shimoon, 11-cv-753, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: David Glovin in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Hytha at email@example.com