Frank T. Poerio Jr., a 62-year-old resident of Gibsonia, Pennsylvania, pleaded guilty in federal court today to four counts of securities fraud related to insider trading of Dick’s Sporting Goods securities.
According to the U.S. Attorney’s Office for the Western District of Pennsylvania, Poerio used confidential, non-public information obtained from a Dick’s Sporting Goods employee to execute over 160 trades of the company’s stock on the New York Stock Exchange between 2019 and 2021.
These trades included purchases of individual shares and call option contracts, resulting in illegal profits exceeding $800,000.
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The employee, who worked in a data analytics role at Dick’s corporate headquarters in Moon Township, Pennsylvania, had access to sensitive financial information about the company’s performance. Poerio frequently sought updates from the employee, who at times responded with statements like “the company is doing very well,” along with requests that Poerio refrain from trading Dick’s securities.
Despite these warnings, Poerio continued to exploit the non-public information for his own financial gain, violating his duty of trust and confidence to the employee and engaging in illegal insider trading.
“Insider trading erodes the foundation of our economy and undermines public trust in our institutions,” said U.S. Attorney Eric G. Olshan. “This is not simply a casual, petty crime. The FBI and our partners remain vigilant in fighting for fairness and integrity in our financial system.”
Poerio’s guilty plea marks a significant victory for the Department of Justice and the Securities and Exchange Commission (SEC) in their ongoing efforts to combat insider trading and maintain market integrity.
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The SEC has also filed a civil complaint against Poerio, seeking disgorgement of ill-gotten gains, prejudgment interest, and civil penalties. The settlement of this complaint is subject to court approval.
Poerio’s sentencing in the criminal case is scheduled for a later date, where he could face substantial fines and imprisonment. This case serves as a stark reminder that those who engage in insider trading will be held accountable for their actions.
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