SEC Charges Three Friends with Insider Trading

Securities and Exchange Commission (SEC) v. David P. Forte, Gregory P. Manning and John D. Younis, No. 1:22-CV-10074 (D. Mass. filed Jan. 19, 2022)

Washington, DC (STL.News) The Securities and Exchange Commission filed insider trading charges today against three friends, who generated more than $90,000 in profits from trading in advance of Analog Devices, Inc.’s announcement that it had acquired Linear Technology Corporation.

According to the SEC’s complaint, David P. Forte obtained material, non-public information about the impending merger of Analog Devices and Linear Technology from his brother, an Analog Devices executive.  The complaint alleges that Forte then tipped his friends, Gregory P. Manning and John D. Younis, who purchased Linear securities, including call options, in advance of the July 26, 2016 announcement.  The complaint also alleges that Younis recommended Linear to a business associate, who purchased Linear stock before the announcement.

The SEC’s complaint charges Forte, Manning, and Younis with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.  Accordingly, the SEC is seeking permanent injunctions and civil penalties against all three defendants.

In a parallel criminal action, the U.S. Attorney’s Office for the District of Massachusetts announced criminal charges against Forte, Younis, and Manning.

The SEC’s investigation was conducted by Peter Senechalle, with the assistance of Jonathon Grobelski of the Chicago Regional Office, and Darren Boerner and David Makol in the Enforcement Division’s Market Abuse Unit.  Brian D. Fagel supervised the case.  The litigation will be led by Alyssa A. Qualls and Michael Foster.  The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

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