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News
Taiwan Execs Face Jail Over iPod Information
Wednesday, August 15th, 2007 at 4:00 PM - by Jeff Gamet
Several executives from Taiwan’s Inventec Appliances Corp. could find themselves in prison for using insider information about iPod production for personal gain. The nine executives allegedly withheld information that Apple was drastically cutting back its iPod orders from the company, according to ITworld.
Apparently the executives -- including Chairman Jackson Chang and President Daniel Lee -- knew as early as January 19, 2006, that Apple was planning on switching its iPod orders to other factories in China, and withheld that information until after they sold off about US$22.4 million worth of IAC stock.
AIC’s stock climbed to a high of NT$183.08 (about US$5.54) in February 2006, and was at about NT$160 (about US$4.84) on March 8 before the news was released. The stock began a downward spiral the next day.
Taiwan prosecutors are hoping to put Mr. Chang in prison for six and a half years, while Mr. Lee faces a seven and a half year sentence. The other executives in the case are looking at stiff sentences as well.
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