arrests of three workers that pretend selling secrets about Apple Inc., Dell Inc. and Advanced Micro Devices Inc.

The men, who worked at AMD, Flextronics International Ltd. and Taiwan Semiconductor Manufacturing Co., were arrested yesterday on securities fraud and conspiracy for a scheme that Manhattan U.S. Preet Bharara prosecutor said operated from 2008 until early 2010.

He was also arrested James Fleishman as we told before here, a sales manager of Primary Global Research LLC, the company of expert networks, where the three worked as consultants. If convicted, all face four to 20 years in prison.

"Prosecutors want to keep the hedge fund that hired the expert consultants to give them inside information," said Stephen Miller, an attorney with Cozen O'Connor LLP and former federal prosecutor in New York and Philadelphia.

A fifth man, Daniel DeVore, 46, former manager of Dell's supply, pleaded guilty to conspiracy to commit securities fraud and wire fraud in federal court in New York on 10 December, the U.S., said yesterday. DeVore said he worked as a paid consultant for global primary in late 2007 to August 2010 and through the company, accepted the money from the hedge fund insider trading.

Network expert companies like Mountain View, California, the main party of global investors with specialists who provide insight into specific markets. The criminal complaint unsealed yesterday described the links between global primary, experts in technology used by hedge funds and unidentified willing to pay for inside information.

Search Warrants

On November 22, FBI agents in New York and Boston executed search warrants at offices worldwide and LP investors Diamondback Capital Management LLC, the companies founded by alumni of SAC Capital Advisors. Agents that day also executed a search warrant at the offices of Lake Capital Management. None of the companies or their employees has been charged with any crime.

"A network insider corrupt in some of the companies in the world technology leaders served as consultants to call their employers were sold for the theft and smuggling of valuable inside information," Bhar said in a statement.

The researchers had consensual recordings and wiretapping of telephones in an unnamed company expert networks, land lines of an unidentified hedge fund and mobile phones of two of those arrested yesterday, Marco Antonio Longoria, who worked on chipmaker AMD, and Walter Shimoon of Flextronics, a Singapore-based manufacturer of electronic components, the U.S., he said. At least two hedge funds are described in the complaint. Neither is identified by name.

Finding an Edge '

"Few hedge fund managers have the ability to generate investment for the benefits they promise," said James Fanto, a professor at Brooklyn Law School in New York, in an e-mail. "They have to find an advantage however, can - in this case through expert networks," said Fanto, who teaches banking law, corporate and securities.

The case is the latest in crime-based office Bharara the participation of hedge funds based on wiretap evidence. Announced the charges against Raj Rajaratnam, 53, co-founder of Galleon Group LLC, in October 2009, calling it the largest case of insider trading with hedge funds.

The new U.S. report shows I was recording the conversations in global primary a month after the arrest of Rajaratnam.

"If you think you should not talk about it - not you," an unidentified employee said primary Shimoon World during a call, the complaint says.

"If you recorded '

"Now that would suck if all calls are recorded," Shimoon answers.

Fleishman, 41, of Santa Clara, California, was charged with fraud and conspiracy for allegedly trying to give non-public information to clients, including hedge funds, according to the complaint. Longoria, 44, of Round Rock, Texas; Shimoon, 39, of San Diego, and Manosha Karunatilaka, 37, of Marlborough, Massachusetts, who worked at chip maker Taiwan Semiconductor, were charged with wire fraud conspiracy to commit securities fraud and conspiracy to commit wire fraud.

Fleishman appeared in federal court in San Jose, California, yesterday and was released on $ 700,000 bail. Longoria was awarded a $ 50,000 bond and was released by a federal judge in Austin, Texas. Karunatilaka got bail from $ 300,000 in federal court in Boston, his lawyer, Brad Bailey, said. Shimoon, San Diego, made an appearance in court yesterday.

"Including hedge funds"

"Customers PGR were fund managers, including hedge funds, many of which were located in Manhattan," said U.S. District DeVore Judge Jed Rakoff in his plea hearing, according to a court transcript.

"I always customers of the PGR and PGR information materials used non-public, confidential information of Dell, the Dell numbers, production, inventory, pricing and market share vendor Dell hard drives," said . "I also knew that on several occasions I spoke with hedge fund managers and employees based in New York," he said.

David Frink, a spokesman for Round Rock-based Dell, the third largest manufacturer of personal computers, said the company will cooperate with the police. DeVore attorney, Johnny Sutton, declined comment.

Longoria, Shimoon Karunatilaka and had worked as consultants to the World Elementary, Dan Charnas, a company spokesman, said in an emailed statement. Fleishman has been placed on leave, Charnas said. He had no further comment.

AMD resigned

AMD Longoria resigned in October, said Mike Silverman, a spokesman for the Sunnyvale chip maker based in California.

"This type of activity is expressly prohibited by the company," Silverman said.

Longoria is cooperating in the investigation, Sam Bassett, his attorney said in an interview.

Flextronics supplies components to Apple during the time of the alleged fraud, prosecutors said in a statement. Shimoon is accused of providing the firm Fleishman, with forecast sales of confidential information and new product features for the iPhone.

Steve Dowling, a spokesman for Cupertino, California, Apple, declined comment.

Renee Brotherton, a California-based spokesman for Flextronics, did not return an e-mail seeking comment. Taiwan Semiconductor, said in an e-mail Karunatilaka employment ending on the day of his indictment and that the chip maker to cooperate with U.S. prosecutors.

Fleishman is the second officer in charge of the first World Bharara office. On November 24, Don Chu Ching Trang was accused of organizing corporate insiders traded for providing misleading information to the hedge fund clients.

Capital Spherix

Chu, 56, was charged with establishing a relationship with Richard Lee Beng Choo, a former member of San Jose, Calif., hedge funds Spherix Capital LLC, prosecutors said in their complaint against Chu. Lee worked as an analyst at SAC Capital Advisors LLC, the hedge fund firm by Steven Cohen, from 1999 to 2004.

The U.S. company said Chu Spherix paid for tips. The information is passed on Atheros Communications Inc., Broadcom Corp. and Sierra Wireless Inc., according to the complaint of the government. At the presentation yesterday, the U.S., said an unidentified cooperating witness, who worked as co-manager of a hedge fund, directed payments to a company without name-the creation of expert networks.

Lee pleaded guilty last year to insider Spherix Capital and is cooperating with the U.S. Galleon at the probe.

"Cooperating Witness

U.S. prosecutors Lee identified as "Cooperating Witness 1" in the last complaint. In July 2009, Lee recorded conversations in which Longoria gave inside information about AMD, the U.S., he said. The new report also identifies Chu as working in the firm Fleishman as a link to consultants and other sources of information in Asia. "

In January, former director of McKinsey & Co. Anil Kumar pleaded guilty to criminal charges, saying that information was leaked before Rajaratnam on the AMD acquisition of ATI Technologies Inc. in 2006, Rajaratnam used to make $ 19 million galleon. Rajaratnam, 53, has denied any wrongdoing and is scheduled for trial next year.

Bharara thanked Apple, Flextronics, AMD, Taiwan Semiconductor and Dell for their help in the U.S. probe. The investigation continues, he said.

"You have to imagine it going in the direction of the funds," said Miller, the former federal prosecutor.