Needham police officer and two others arrested for insider trading | USAO-MA

0

BOSTON — Three men were arrested today for allegedly conspiring to exchange inside information about a Massachusetts company’s proposed acquisition of a California semiconductor company.

David Forte, 58, of Acton; John Younis, 59, of Bristol, RI; and Gregory Manning, 59, of Needham, have each been charged with one count of conspiracy to commit securities fraud. The defendants will appear in federal court in Boston this afternoon.

According to the charging documents, on or about June 22, 2016, Forte – an officer with the Needham Police Department – obtained non-public material information from a close relative who is a senior executive at Analog Devices, Inc. (Analog), a Norwood-based semiconductor company, regarding Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, California. Forte allegedly passed the information on to two close friends, Manning and Younis, who bought shares of Linear in the week before the acquisition was publicly announced on July 26, 2016. Younis also allegedly purchased call options – which are a bet that the price of a stock will rise before the option expires – and would have tipped a trading associate to also buy Linear stock. After the deal was announced, Manning, Younis, and Younis’ associate allegedly sold their Linear securities at a profit, and Manning paid Forte a bribe in appreciation for Forte’s tip.

The conspiracy to commit securities fraud charge carries a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or double the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the US Sentencing Guidelines and other statutory factors.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston office, made the announcement. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Finance and Cyber ​​Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt by a court.

Share.

About Author

Comments are closed.