BOSTON (WBZ NewsRadio) – Three men were arrested Wednesday for allegedly conspiring to trade on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company.
Needham Police Officer David Forte of Acton along with John Younis of Bristol, Rhode Island and Gregory Manning of Needham have all been charged with one count of conspiracy to commit securities fraud.
Around June 22, 2016 Forte allegedly obtained non-public information from a close relative at Analog Devices Inc., based in Norwood, about the company’s planned acquisition of Linear Technology Corp – a semiconductor company based in Milpitas, California. Forte then allegedly shared that information with Younis and Manning, who both purchased shares of Linear stocks in the week leading up to the public announcement of the acquisition.
After the announcement Manning, Younis and a business associate of Younis, who also purchased a share, all sold their stocks for a profit. Manning then allegedly paid Forte in appreciation for giving him the tip in the first place.
The Needham Police Department has placed Forte on paid administrative in response to his arrest. Forte has been with the department since January 2005.
All three men are set to appear in federal court in Boston Wednesday afternoon. They are facing charges of conspiracy to commit securities fraud which carries a maximum prison term of five years upon conviction.