SEC Charges Former Linear Technology Corporation Officer and Three Others with Insider Trading
Litigation Release No. 25275 / December 1, 2021
Securities and Exchange Commission v. Robert C. Dobkin, Cynthia Braun, Michael Fiorillo and Jeffrey S. Gregersen, No. 5:21-cv-09285 (N.D. Cal. filed Dec. 1, 2021)
The Securities and Exchange Commission filed insider trading charges today against four members of a Silicon Valley insider trading ring, who generated more than $325,000 in profits from trading in advance of Linear Technology Corporation's announcement that it would be acquired by Analog Devices, Inc.
According to the SEC's complaint, Robert C. Dobkin, a founder and the then chief technical officer of Linear Technology Corporation, was provided with highly confidential information about the impending merger of Linear Technology and Analog Devices. The complaint alleges that Dobkin tipped his friends, Cynthia Braun and Michael Fiorillo, who purchased Linear securities, including out-of-the-money call options, in advance of the July 26, 2016 announcement. The complaint also alleges that Fiorillo tipped his friend, Jeffrey S. Gregersen, who also illegally traded on the information.
The SEC's complaint charges Dobkin, Braun, Fiorillo and Gregersen with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking permanent injunctions and civil penalties against all four defendants and an officer and director bar against Dobkin.
The SEC's investigation was conducted by Peter Senechalle, with the assistance of Jonathon Grobelski of the Chicago Regional Office, and Darren Boerner and David Makol in the Enforcement Division's Market Abuse Unit. The case was supervised by Brian D. Fagel. The litigation will be led by Alyssa A. Qualls, Michael Foster and John E. Birkenheier.