PHILADELPHIA – A high-stakes case of insider trading has come to light, with former EBay executive Christopher Saridakis, 45, of Wilmington, DE, facing charges of securities fraud. If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment.
According to the allegations, Saridakis, a senior executive at GSI Commerce, Inc. (“GSIC”), provided material, non-public information regarding eBay’s pending acquisition of GSIC. This information was allegedly shared with a close friend, CW1, who purchased 25,000 shares of GSIC stock on margin for approximately $470,000 on March 22, 2011.
Following the acquisition, CW1 sold the shares on June 20, 2011, receiving $737,500 in the process, resulting in an illicit profit of $260,304. Saridakis allegedly also shared the same material non-public information with family members and his neighbor.
Saridakis, who was privy to discussions of a merger, sent a series of text messages to CW1 on March 20, 2011, which included the statement, “you should” buy GSIC shares, to which CW1 replied, “ok,” and Saridakis responded, “soon.”
U.S. Attorney Zane David Memeger credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation. He also thanked Scott Friestad, an associate director in the U.S. Securities and Exchange Commission’s (“SEC”) Washington DC office. Saridakis and others have been charged in a parallel civil matter by the SEC.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein. An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
The indictment against Saridakis has sparked outrage among investors and regulators alike, highlighting the need for strict enforcement of insider trading laws. As the investigation continues, one thing is clear: insider trading will not be tolerated in the business world.
RELATED: Phyllis Doty Indicted in $12K School Fraud Scheme
Related Federal Cases
- Canadian Firm, 3 Execs Accused in $4M Foreign Drug Scheme · Washington
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
- James Halts AmeriCorps Funding Dismantling · Washington
- Attorney General James Co-Leads Coalition to Save Humanitarian Parole Program · Pennsylvania
- 23andMe Faces Legal Fire for Genetic Data Sale · Washington
Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News