A former Needham police officer, David Forte, has been sentenced for his role in an insider trading conspiracy. "Former Needham Police Officer Sentenced for Insider Trading Conspiracy," read a recent Department of Justice (DOJ) press release.
U.S. District Court Judge Allison D. Burroughs sentenced David Forte, 60, to one year of supervised release, ordering the first six months to be served at home. He was also penalized with a $25,000 fine. Forte was convicted in June 2023 for conspiracy to commit securities fraud and securities fraud.
As noted in the DOJ statement, Forte misused non-public information given to him by his brother, a high-ranking executive at Analog Devices, Inc., in 2016. This confidential information relates to the planned acquisition of Linear Technology Corp., a California-based semiconductor company.
When he shared this non-public information with his friends, John Younis and Gregory Manning, Forte directed them to purchase Linear securities and share the profits with him surreptitiously. He inclined Younis not to buy Analog securities due to his brother's position within the company. As a result of this scheme, Younis and Manning gathered Linear securities and shared their proceeds with Forte upon their sale.
In June 2022, Younis received a sentence of one month of home detention and two years of probation after pleading guilty to his part in the conspiracy. Alternatively, Manning pleaded guilty in October 2023 and is now awaiting his sentencing, scheduled for January 3, 2024.
Joshua S. Levy, the Acting United States Attorney, and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the sentencing announcement. The Securities and Exchange Commission (SEC) offered crucial assistance during the case, which was prosecuted by Assistant US Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial, and Cyber Fraud Unit.
