BlackBerry's former retail executive was arrested and imprisoned for selling the confidential insider trading information to another company.
A former retail execute from BlackBerry Ltd. (NASDAQ:BBRY) was imprisoned for 5 months because he sold the confidential and private data related to the company to a market expert whose consequent analysis report over 2013 sales for the company’s brand new and advance cellphone affected its stock price to a decline. In Boston, Douglas Woodlock, the Judge of United States District, commanded James Dunham, 60, to give five months of house captivity following his custodial term and to fulfill the penalty with the amount worth $76,000, after his earnest and emotional appeal in June to wire fraud. In Boston, US Attorney Carmen Ortiz put forward the confirmation regarding the judgment, and appeared in the first case spilling out of its inquiries into the black market for confidential information and data that remained outside the insider selling and purchasing activities. US Advocate Carmen Ortiz stated some lines in order show aggressive attitude in order to sue the one who is involved in illegal activities to leak the company’s insider information. The attorney affirmed that they would not show any kind of hesitation or did not even wait to litigate the one who is corrupt or seems to be involved in selling or buying private corporate data, regardless of whether there is evident connection related to insider transaction. Dunham was the Chief Operating Officer of wireless telecommunication firm, Wireless Zone, which operates around 400 outlets of Verizon Wireless association. With respect to the involved litigations and court documents, Dunham was involved in a secret cooperation with a stock specialist who worked for a Boston-based financial investment organization, named as Detwiler Fenton, in 2010, in order to provide insider information to the wireless firm, for which he got the monthly salary of around $2000. The legal representatives stated that the information received by the analysts acknowledged them about the affairs at the company’s stores and was used for research analysis provided to financial investors. The game plan was caught red handed during the month of April in 2013, as Dunham leaked the information about BlackBerry’s new mobile phone. During the time, which was not identified in the court documents, the company matched the details of smart phones companies, whose release of Z10 mobile was critical to the distressed company. According to the sources, BlackBerry stock showed a declined by 7%. The company disregarded that news and praised regulators to investigate properly. This news created a wind of excitement among stakeholders in the market.
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