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Director Leaks Mega-Deal Secrets To Pals For Quick Cash!

  
July 17, 2026


  
  

    

      
      

    

  




  



        


SEC v. Jamal (“Jimmy”) Chammout; Ali El Siblani; Ali Jawad; Rabih Rakha — U.S. Securities and Exchange Commission Litigation Release No. 26589, dated July 17, 2026.


The SEC charged a former director of Desktop Metal, Inc., Ali El Siblani, and three friends for allegedly engaging in insider trading. El Siblani tipped his friends about an upcoming acquisition of ExOne, allowing them to profit from trading ExOne securities before the public announcement. El Siblani, Jawad, and Rakha have settled the charges.




In Plain English
Imagine your friend works at a company and learns it's going to buy another company for a lot more money than its stock is currently worth. Your friend tells you this secret information before anyone else knows. You then quickly buy a lot of stock in the company that's being bought. When the news comes out, the stock price jumps, and you sell your shares for a big profit. This is illegal insider trading because you used secret information to make money unfairly.
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. Director Learns of Acquisition From at least June through August 2021, Ali El Siblani, a senior executive and director at Desktop Metal, Inc., was entrusted with confidential information about his company's planned acquisition of The ExOne Company. El Siblani learned the significant premium Desktop Metal intended to pay ExOne shareholders by August 6, 2021.
  2. Breach of Duty and Tipping Friends Despite Desktop Metal's internal policies requiring confidentiality, El Siblani breached his fiduciary duty. He tipped his close friends, Jamal Chammout, Ali Jawad, and Rabih Rakha, about the impending acquisition between July 21 and August 10, 2021, including August 7 text messages with Chammout that were later deleted.
  3. Tippees' Sudden Interest The tippees, who had no prior interest in ExOne, simultaneously began building substantial positions in ExOne securities shortly after communicating with El Siblani. This sudden and parallel buying spree occurred just before the acquisition announcement.
  4. Concentrated Investments The tippees understood the significance of the information. Chammout invested over 96% of his portfolio in ExOne stock and options, while Jawad also purchased ExOne shares on margin, demonstrating a high-risk, concentrated bet based on the tip.
  5. Acquisition Announcement On August 11, 2021, Desktop Metal publicly announced its acquisition of ExOne at a premium to the market price, confirming the material non-public information El Siblani had shared.
  6. Illicit Profits Realized Following the announcement, the tippees quickly sold their ExOne positions. Chammout obtained illicit profits of $218,036, Jawad made $218,082, and Rakha profited $61,006 from their trades.


The Enforcement Action
On July 17, 2026, the SEC charged Ali El Siblani, a former director of Desktop Metal, Inc., and three friends, Jamal Chammout, Ali Jawad, and Rabih Rakha, with insider trading. The SEC alleged El Siblani tipped his friends about Desktop Metal's impending acquisition of ExOne, allowing them to profit from trading ExOne securities. El Siblani, Jawad, and Rakha agreed to settle the charges, facing permanent injunctions, civil penalties, and disgorgement with prejudgment interest. El Siblani also faces an officer and director bar.


Named in this action: Jamal Chammout, Ali Jawad, Rabih Rakha, Ali El Siblani.


Original SEC litigation release ↗ · Browse all cases