TSMC and AMD Executives Accused of Trading Inside Information

Since Christmas really is getting closer by the day, the IT industry figured it would bring forth another present in the shape of a new set of legal procedures, this time involving AMD and TSMC, among others.

Taiwan Semiconductor Manufacturing Company (TSMC) is, as consumers know, the primary manufacturer of both AMD and NVIDIA graphics processing units.

It now seems that the foundry, along with its great client Advanced Micro Devices, or at least come of their employees, have become the targets of legal actions.

As Reuters has it, TSMC's business development manager, Manosha Kaurnatilaka, is accused of having accepted money in exchange for providing Primary Global Research with confidential information.

Said information subsequently landed in the hands of investors.

"The information trafficked by the four 'consultants' went way beyond permissible market research; it was insider information," said FBI Assistant Director-in-Charge Janice K. Fedarcyk

"And the fifth defendant was directly involved in the transfer of inside information from the consultants to hedge funds and other end users,” she added.

Defenders is used as a plural because Kaurnatilaka was not the only one subject to the insider trading probe.

According to the report, the insider trading probe also implicated Mark Anthony Longoria, who was once a supply chain manager at Advanced Micro Devices.

The other two accused are Walter Shimoon, Flextronics business development director, and Primary Global Research executive James Fleishman

Longoria is implied to have accepted $200,000 from Primary Global Research in exchange for confidential AMD information, including ASPs, revenues, sales figures, and gross margins.

That said, Longoria resigned form his position with AMD back in October, while Fleishman was arrested for conspiracy and fraud charges. Meanwhile, TSMC has cut ties with Kaurnatilaka.

The latter was supposedly contacted by the FBI a few months ago and asked to assist in the investigation.

“The more than $400,000 the firm paid the four 'consultants,' merely to participate in phone calls with firm clients, is an indication of the value placed on the information. This wasn't market research. What the defendants did was purchase and sell insider information. Our investigation is most assuredly continuing," Fedarcyk said.