SPORTING GOODS SCALP! Insider Raked In $800K on Secret Dicks' Data!

SEC v. Frank T. Poerio, Jr. — U.S. Securities and Exchange Commission Litigation Release No. 26240, dated February 6, 2025.

The SEC charged Frank T. Poerio, Jr. with insider trading based on material, nonpublic information about Dick's Sporting Goods. Poerio traded securities between November 2019 and May 2021, profiting over $800,000. He consented to a final judgment ordering disgorgement and interest, which was satisfied by a criminal restitution order.

In Plain English

Imagine someone learned secret information about a company's upcoming sales report before it was announced. This person then used that secret information to buy a lot of the company's stock, hoping the price would go up when the good news came out. That's exactly what Frank Poerio did with Dick's Sporting Goods. He made over $800,000 by trading on this secret tip, which is against the rules.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Access to Inside Information Between November 2019 and May 2021, Frank T. Poerio, Jr. knew an employee of Dick's Sporting Goods, Inc. This employee had access to sensitive company data, including detailed sales figures and inventory reports, through internal databases like 'ERA - KPI 2.0' and 'OPS – Sales Analysis'.
2. Misappropriation of Information Poerio obtained material, nonpublic information concerning Dick's Sporting Goods's quarterly revenue figures from this employee. This was in breach of the employee's duty of trust and confidence to the company and its shareholders.
3. Trading on Inside Information Using the misappropriated information, Poerio purchased common stock and options of Dick's Sporting Goods. These trades were timed in advance of the company's public announcements of its quarterly financial results.
4. Realizing Illegal Profits As a direct result of his illicit trading activities, Poerio realized illegal profits totaling approximately $823,367.

The Enforcement Action

SEC obtains final judgment against Frank T. Poerio, Jr. for insider trading. Poerio traded securities of Dick's Sporting Goods, Inc. based on material, nonpublic information misappropriated from an insider between November 2019 and May 2021, realizing illegal profits of over $800,000. Poerio consented to a final judgment ordering disgorgement of $823,367 plus prejudgment interest of $32,967.50. This payment was deemed satisfied by criminal restitution ordered in a parallel criminal action. The judgment also permanently enjoined Poerio from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

Named in this action: Frank T. Poerio, Jr..

Original SEC litigation release ↗ · Browse all cases