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InfoWorld reports on an alleged case of insider trading at iPod OEM Inventec. It's said nine executives and at least one regular employee withheld news from the public that led to a significant slide in the company's share price while they themselves cashed in the shares. Taiwan's Banciao District Prosecutors Office alleged the nine executives and one lower level employee failed to publicly reveal a steep drop in iPod orders until after they had sold off nearly [$22.4-million] worth of stock on the Taiwan Stock Exchange. Company officials knew they would lose about 50 percent of the company's iPod business as early as Jan 19, but did not reveal that information until March 24 whereupon shares tanked. Prosecutors are seeking the stiffest penalties against the two top executives, Chairman Jackson Chang and President Daniel Lee—more than six years apiece and fines over US$1-million each, as well. Editor's note: It's worth noting that Steve Jobs purchased 120,000 shares of AAPL on Aug 13 at $5.75 per, which could net him a profit of $13.7-million. Earlier this year, Steve Jobs and other Apple execs—Fred Anderson and Nancy Heinen aside—were exonerated by the company and federal officials in an options back-dating scandal. Isn't it ironic that executives in lawless Asia appear to be facing the full measure of the law... What's your take?
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