SEC v. Frank T. Poerio, Jr., No. LR-26002, Western District of Pennsylvania (May 10, 2024) — Press Release
raw: Frank T. Poerio, Jr.
Frank T. Poerio, Jr., No. 2:24-cv-700 (May 10, 2024)
summary
Frank T. Poerio, Jr. was charged by the SEC with insider trading involving Dick’s Sporting Goods, resulting in a settlement and parallel criminal charges.
paragraph
The SEC charged Pennsylvania resident Frank T. Poerio, Jr. with insider trading for misappropriating nonpublic information about Dick’s Sporting Goods to realize over $800,000 in illegal profits. Poerio allegedly violated Section 10(b) of the Securities Exchange Act and Rule 10b-5 between November 2019 and May 2021. He agreed to a settlement involving a permanent injunction and the payment of disgorgement, interest, and civil penalties.
narrative
The Securities and Exchange Commission has charged Frank T. Poerio, Jr. of Gibsonia, Pennsylvania, with insider trading involving Dick’s Sporting Goods Inc. Between November 2019 and May 2021, Poerio allegedly misappropriated material, nonpublic information regarding the company's financial performance from an employee. By trading on these confidential updates, Poerio realized illegal profits exceeding $800,000. The SEC's complaint alleges that Poerio 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 announced parallel criminal charges against him.
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Parties
Securities and Exchange CommissionFrank T. Poerio, Jr.
Keywords
poeriosecsecuritiesfrank poeriosecurities exchangeexchange commissionwestern pennsylvaniadickinformationemployeefrankexchangepennsylvaniacompanyinsider trading
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $800K $800,000 $100K–$1M
Entities 2
- company nonpublic financial information to trade in dick’s securities
- agency Securities and Exchange Commission
Triples 10
- Securities And Exchange Commission charged 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
- Frank T. Poerio, Jr. knew a Dick’s employee who had access to multiple internal sources of material nonpublic information about the company’s financial results
- Frank T. Poerio, Jr. asked the employee for updates on the company’s performance
- 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
- Frank T. Poerio, Jr. used nonpublic financial information to trade in Dick’s securities
- Frank T. Poerio, Jr. breached his duty of trust and confidence to the employee
- Securities And Exchange Commission filed a complaint in U.S. District Court for the Western District of Pennsylvania charging Poerio with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
- Frank T. Poerio, Jr. 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
- U.S. Attorney’s Office for the Western District of Pennsylvania announced criminal charges against Frank T. Poerio, Jr.
- Securities And Exchange Commission appreciates the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI
PDF (from attached: complaint)
Text layers
Extracted body text (2,455c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26002 / May 10, 2024 Securities and Exchange Commission v. Frank T. Poerio, Jr., Civil Action No. 2:24-cv-700 (W.D.Pa. filed May 10, 2024) SEC Charges Pennsylvania Resident with Insider Trading in Dick’s Sporting Goods 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. 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 of the SEC’s action 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 Mark Cave. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI. SEC Complaint
OCR text (2,455c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26002 / May 10, 2024 Securities and Exchange Commission v. Frank T. Poerio, Jr., Civil Action No. 2:24-cv-700 (W.D.Pa. filed May 10, 2024) SEC Charges Pennsylvania Resident with Insider Trading in Dick’s Sporting Goods 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. 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 of the SEC’s action 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 Mark Cave. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania and the FBI. SEC Complaint