David Forte, Insider Trading Conspiracy, Massachusetts 2023

Insider Trading Ring Cracked: Former Needham Police Officer David Forte Brought to Justice

A former Needham police officer has been sentenced for his role in a brazen insider trading conspiracy that netted his co-conspirators a tidy profit.

David Forte, 60, of Acton, received a one-year sentence of supervised release, with the first six months to be served in home confinement, along with a $25,000 fine.

Forte was convicted in June 2023 of one count of conspiracy to commit securities fraud and one count of securities fraud by a federal jury. His co-conspirators, John Younis and Gregory Manning, were also involved in the scheme.

The scheme unraveled in July 2016 when Analog Devices, Inc., a Massachusetts-based semiconductor company, announced its plan to acquire Linear Technology Corp., a California-based semiconductor company. Forte, who had obtained material non-public information from his brother, a senior executive at Analog, tipped off his co-conspirators, who then purchased Linear securities, amassing a substantial profit when the stock price surged 30 percent after the announcement.

The scheme was uncovered by the Securities and Exchange Commission, which provided valuable assistance in the investigation. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

In related cases, Younis was sentenced to one month of home detention and two years of probation after pleading guilty to his role in the conspiracy. Manning, who also pleaded guilty, is slated to be sentenced on January 3, 2024.

The case serves as a stark reminder that insider trading is a serious crime that will be vigorously pursued by law enforcement agencies.

Forte’s sentence is a significant blow to those who would seek to use their positions for personal gain.

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