Gibsonia man charged with insider trading based on non-public information related to Dick’s Sporting Goods business operations

PITTSBURGH, Pa. - A resident of Gibsonia, Pennsylvania, was charged in federal court with securities fraud, United States Attorney Eric G. Olshan announced today.

Frank T. Poerio Jr., 62, was charged by criminal Information with four counts of securities fraud.

According to the Information, Poerio used sensitive, material non-public information (MNPI) obtained from a Dick's Sporting Goods employee to engage in nearly 200 trades of the company's securities on the New York Stock Exchange, including the purchase of individual shares and call option contracts. The trading allegedly occurred between August 2019 and May 2021 when the insider worked in a data analytics role at the company's corporate offices in Moon Township, Pennsylvania. The trades allegedly netted approximately $823,000 in profit for Poerio. As alleged, Poerio knew the Dick's employee and spoke often with the employee about finances and investing. Several of the alleged trading incidents occurred in the days immediately preceding Dick's release of periodic earnings statements—so called “blackout” periods, when Dick's employees were prohibited from trading in the company's securities.

At each count, the defendant faces a maximum sentence of up to 20 years in prison, a $5 million fine, or both. Under the federal Sentencing Guidelines, the actual sentence imposed by the court would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant, among other factors.

Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Poerio.

A criminal Information is an accusation. A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.