SEC Charges Pennsylvania Resident with Insider Trading in Dick’s Sporting Goods Securities
summary
Frank T. Poerio, Jr. was charged by the SEC with insider trading involving Dick’s Sporting Goods Inc., resulting in a settlement and parallel criminal charges.
paragraph
The SEC charged Frank T. Poerio, Jr. with misappropriating material nonpublic information to realize illegal profits exceeding $800,000. He is accused of violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Poerio agreed to a settlement involving a permanent injunction and the payment of disgorgement, interest, and civil penalties.
narrative
The SEC has charged Gibsonia, PA resident Frank T. Poerio, Jr. with insider trading for misappropriating material, nonpublic information regarding Dick’s Sporting Goods Inc. Between November 2019 and May 2021, Poerio allegedly obtained confidential previews of quarterly revenue figures from a Dick’s employee. Despite the employee's requests not to trade, Poerio used the information to realize illegal profits of more than $800,000. The SEC alleges these actions violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Without denying the allegations, Poerio agreed to a settlement that includes a permanent injunction and the payment of disgorgement, interest, and civil penalties. Additionally, the U.S. Attorney’s Office for the Western District of Pennsylvania has brought parallel criminal charges against him.
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Parties
criminal charges against poerioinformation to trade in dick’s securitiesSecurities and Exchange Commission
Keywords
secpoeriosecuritiesinsider tradinginformationdickdick sportingsporting goodswestern pennsylvaniapennsylvaniatradingemployeeinsidercompanypennsylvania resident
Extracted insights
Dollar amounts 1
- $800K $800,000 $100K–$1M
Entities 4
- person criminal charges against poerio
- scheme_term frank t. poerio jr. with insider trading
- company information to trade in dick’s securities
- agency Securities and Exchange Commission
Triples 7
- SEC charged Frank T. Poerio Jr. With Insider Trading
- Poerio realized Illegal Profits Of More Than $800,000
- Poerio knew Dick’s Employee With Access To Material Nonpublic Information
- Poerio used Information To Trade In Dick’s Securities
- Poerio agreed to Settlement That Permanently Enjoins Him From Violating Charged Provisions
- Settlement orders Poerio To Pay Disgorgement, Prejudgment Interest, And A Civil Money Penalty
- U.S. Attorney’s Office For The Western District Of Pennsylvania announced Criminal Charges Against Poerio
Extracted body text (2,505c)
The Securities and Exchange Commission today charged Gibsonia, PA resident Frank T. Poerio, Jr. with insider trading for misappropriating material, nonpublic information concerning Dick’s Sporting Goods Inc. and trading on that information, realizing illegal profits of more than $800,000. According to the SEC’s complaint, between November 2019 and May 2021, Poerio knew a Dick’s employee who had access to multiple internal sources of material nonpublic information about the company’s financial results. The SEC alleges that Poerio frequently asked the employee for updates on the company’s performance, and, at times, the employee responded with statements to the effect that the company was “doing very well,” coupled with requests that Poerio not trade in Dick’s securities. The SEC alleges that Poerio understood that these statements were based on the employee’s access to nonpublic financial information and previews of the company’s upcoming quarterly revenue figures. Poerio used this information to trade in Dick’s securities, in breach of his duty of trust and confidence to the employee. “We allege that Poerio exploited the trust of someone close to him by pumping that person for information and then ignoring his repeated requests not to trade on that information,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement. “Today’s charges showcase the SEC’s ability to detect and charge those who seek to profit off insider trading.” The SEC’s complaint, filed in U.S. District Court for the Western District of Pennsylvania, charges Poerio with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without denying the allegations of the SEC’s complaint, Poerio agreed to a settlement that permanently enjoins him from violating the charged provisions of the federal securities laws and orders him to pay disgorgement, prejudgment interest, and a civil money penalty in amounts to be determined by the Court. The settlement is subject to the Court’s approval. In a parallel action, the U.S. Attorney’s Office for the Western District of Pennsylvania today announced criminal charges against Poerio. The SEC’s investigation was conducted by Jason Litow, with assistance from Brian Shute, Max Clarke, Steve Rapkin, Derek Bentsen, and James Carlson, under the supervision of Kevin Guerrero, Stacy Bogert, and Mr. Cave. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI.
OCR text (2,505c · html-text · 99% conf)
The Securities and Exchange Commission today charged Gibsonia, PA resident Frank T. Poerio, Jr. with insider trading for misappropriating material, nonpublic information concerning Dick’s Sporting Goods Inc. and trading on that information, realizing illegal profits of more than $800,000. According to the SEC’s complaint, between November 2019 and May 2021, Poerio knew a Dick’s employee who had access to multiple internal sources of material nonpublic information about the company’s financial results. The SEC alleges that Poerio frequently asked the employee for updates on the company’s performance, and, at times, the employee responded with statements to the effect that the company was “doing very well,” coupled with requests that Poerio not trade in Dick’s securities. The SEC alleges that Poerio understood that these statements were based on the employee’s access to nonpublic financial information and previews of the company’s upcoming quarterly revenue figures. Poerio used this information to trade in Dick’s securities, in breach of his duty of trust and confidence to the employee. “We allege that Poerio exploited the trust of someone close to him by pumping that person for information and then ignoring his repeated requests not to trade on that information,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement. “Today’s charges showcase the SEC’s ability to detect and charge those who seek to profit off insider trading.” The SEC’s complaint, filed in U.S. District Court for the Western District of Pennsylvania, charges Poerio with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without denying the allegations of the SEC’s complaint, Poerio agreed to a settlement that permanently enjoins him from violating the charged provisions of the federal securities laws and orders him to pay disgorgement, prejudgment interest, and a civil money penalty in amounts to be determined by the Court. The settlement is subject to the Court’s approval. In a parallel action, the U.S. Attorney’s Office for the Western District of Pennsylvania today announced criminal charges against Poerio. The SEC’s investigation was conducted by Jason Litow, with assistance from Brian Shute, Max Clarke, Steve Rapkin, Derek Bentsen, and James Carlson, under the supervision of Kevin Guerrero, Stacy Bogert, and Mr. Cave. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI.