Chatham Man Sentenced For Insider Trading

CHATHAM – A Chatham man has been sentenced to serve three months of home confinement, 21 months of supervised release and to pay a fine of $20,000 for his role in an insider trading scheme.

Gregory Manning, a 61-year-old resident of the Riverbay neigborhood, was sentenced in federal court in Boston Tuesday for trading on inside information about a Massachusetts semiconductor company’s planned acquisition of a California company. He was charged in January 2020 along with two co-defendants, John Younis and David Forte. Last October, Manning pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.

Prosecutors say that, in around June 2016, Forte ­obtained an insider tip from his brother who was a senior executive at Norwood-based Analog Devices, Inc., that the company planned to acquire Linear Technology Corp., a semiconductor company based in Milpitas, Calif. Forte passed the information to Manning, who purchased 3,000 shares of Linear stock in the week leading up to the public announcement of the acquisition on July 26, 2016. After the deal was announced, Manning sold all the Linear shares he had purchased for a profit and later paid Forte a kickback in appreciation for Forte’s stock tip.

In June 2022, Younis was sentenced to two years of probation, with the first month served on home detention, after pleading guilty to trading in Linear securities based on the material non-public information Forte provided to him. In July 2023, Forte was convicted by a federal jury of one count of conspiracy to commit securities fraud and one count of securities fraud. In November 2023, he was sentenced to one year of supervised release with the first six months to be served on home detention.

The case was prosecuted by the U.S. Attorney's office with help from the FBI and the Securities and Exchange Commission.

Read the U.S. Attorney's press release here:

https://www.justice.gov/usao-ma/pr/chatham-man-sentenced-insider-trading-scheme