Needham Police Officer Accused Of Insider Trading Scheme

NEEDHAM, MA — A Needham police officer and two other men were scheduled to be arraigned in U.S. District Court in Boston Wednesday afternoon on insider trading charges related to a Massachusetts company's acquisition of a California semiconductor maker.

Needham police officer David Forte, 58, of Acton, Gregory Manning, 59, of Needham, and John Younis, 59, of Rhode Island, were each charged with one count of conspiracy to commit securities fraud, according to U.S. District Attorney Rachael Rollins.

"Today, we were informed that Officer David Forte was arrested for alleged securities
fraud," said Needham Police Chief John Schlittler told Patch. "He has been placed on paid administrative leave pending further information surrounding the allegations"

Forte, according to court documents, was able to get information from a close relative and senior executive at Analog Devices Inc. that the Norwood-based semiconductor company was planning to acquire Linear Technology Corp. of California. The merger closed in March 2017.

Prosecutors say Forte shared the information with Manning and Younis, who bought shares of Linear in the week before the merger was announced on July 26, 2016. Manning and Younis sold their Linear shares after the announcement, and Manning paid Forte a kickback for the tip, prosecutors said.

If convicted, each man faces up to five years in federal prison, three years supervised release, and a maximum fine of $250,000 or twice the gross gain or loss, whichever is higher.

Officer Forte has been with the Needham Police Department since January 2005.