A Gibsonia man, identified as Frank T. Poerio, Jr., is facing serious time after admitting to insider trading, banking nearly $823,000 in illicit profits through more than a hundred transactions using information he wasn't privy to, according to an announcement from U.S. Attorney Eric G. Olshan, as per U.S. Attorney's Office, Western District of Pennsylvania.
Poerio, 62, pleaded guilty to four counts of securities fraud before United States District Judge Marilyn J. Horan, stemming from trades of Dick’s Sporting Goods securities he conducted stealthily between August 2019 and May 2021, utilizing material non-public information, which he sourced from an insider, Dick’s employee, this tangled web of deceit and profit unfolded as Poerio leveraged data he wasn't meant to have, dealing in both shares and call option contracts that aligned suspiciously with the company's blackout periods just before earnings announcements.
In a statement released by the U.S. Attorney's Office, Olshan emphasized the gravity of the offense: "Frank Poerio admitted to gaming the system by using material non-public information from a company employee to conduct well more than a hundred trades over the course of several years that resulted in nearly a million dollars in profit." Poerio's sentencing is slated for October 31, where he could face up to 20 years in prison and a $5 million fine for each count.
FBI Pittsburgh Special Agent in Charge Kevin Rojek weighed in on the case with a stern warning, underscoring the broader impact of such seemingly white-collar crimes and the relentless pursuit of justice by federal agencies, stating, "Insider trading erodes the foundation of our economy and undermines public trust in our institutions," and, "The FBI will persistently pursue those who believe they can abuse their position to unfairly reap financial gains at the expense of others,” while the actual sentence will be determined by factors including the severity of his offenses and any previous criminal history Poerio may have on his record, as detailed by U.S. Attorney's Office.
Assistant United States Attorney Gregory C. Melucci is leading the charge against Poerio, and the Federal Bureau of Investigation is credited with laying the groundwork for this case that underscores the unending battle against corruption within our financial markets.
