A Gibsonia man is facing federal charges after allegedly using non-public information to engage in nearly 200 trades of Dick’s Sporting Goods securities.
Frank T. Poerio Jr., 62, of Gibsonia, Pennsylvania, was charged in federal court with four counts of securities fraud, announced United States Attorney Eric G. Olshan on Tuesday.
According to the criminal Information, Poerio used sensitive, material non-public information (MNPI) obtained from a Dick’s Sporting Goods employee to engage in the trades on the New York Stock Exchange between August 2019 and May 2021.
The trading allegedly netted approximately $823,000 in profit for Poerio. As alleged, Poerio knew the Dick’s employee and spoke often with the employee about finances and investing.
Several of the alleged trading incidents occurred in the days immediately preceding Dick’s release of periodic earnings statements—so-called ‘blackout’ periods, when Dick’s employees were prohibited from trading in the company’s securities.
At each count, Poerio faces a maximum sentence of up to 20 years in prison, a $5 million fine, or both. The actual sentence imposed by the court would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant, among other factors.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Poerio. Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
A criminal Information is an accusation. A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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