Police officer, others charged with insider trading related to chipmaker merger

  • Prosecutors said the police officer learned of the analogue fusion from his brother
  • Prosecutors said the officer told two friends who had traded

(Reuters) – A Massachusetts police officer and two friends were arrested Wednesday on charges of conspiracy to engage in insider trading based on undisclosed information about Analog Devices’ planned acquisition of Liner Technology in 2016.

Federal prosecutors in Boston said David Forte, an officer with the Needham Police Department, learned of the deal from his brother, a senior Analog executive, before it was made public.

Forte, 58, passed the information on to two close friends, John Younes, a construction company owner, and Gregory Manning, who was self-employed. The three grew up together and took an annual vacation together, according to a criminal complaint.

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Based on this information, Manning, 59, and Younes, 59, bought Linear shares the week before the two companies on July 26, 2016, and publicly announced a $14.8 billion deal, news that helped drive their stock price up, he said. plaintiffs.

Manning and Yunus earned from their trade $7,979 and about $52,000, respectively. Authorities said that a third person, the owner of a demolition company who was dealing with Younes, earned $1,017 on the advice of Younes’ business.

Prosecutors said Manning paid Forte a cash bribe in exchange for his information.

John Sylvia, Forte’s attorney at Mintz, Levin, Cohn, Ferris, Glovsky & Popeo; Peter Parker, Younes’ attorney. William Synnott, Manning’s attorney at Hinckley Allen, did not respond to requests for comment.

The three men were charged with conspiracy to commit securities fraud. Neither the owner of the demolition company nor the CEO of Analog have been charged.

The case is United States v. Forte, US District Court, District of Massachusetts, No. 22-MG-06014.

For the United States: David Holcomb of the US Attorney’s Office for the Massachusetts

Forte: John Silvia of Mintz, Levine, Cohn, Ferris, Glovsky and Bobbio

Lyons: I Peter Parker

Manning: William Synnott of Hinckley Allen

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Our Standards: Thomson Reuters Trust Principles.

Nate Raymond

Nate Raymond Report on Federal Judiciary and Litigation. He can be contacted at [email protected]


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