Christopher Saridakis, 45, of Wilmington was charged Monday with securities fraud. Saridakis, CEO of GSI Commerce, Inc. provided material, non-public information regarding eBay’s pending acquisition of GSI, according to the U.S. Attorney’s Office in Philadelphia.
According to a release from the U.S. Attorney’s office, on March 20, 2011, Saridakis sent a series of text messages to that began with the defendant asking if CW1 “…own[ed] our [GSIC] shares?” CW1 replied, “no, but it’s cheap.”
Saridakis was an executive with GSI and a former top digital executive with Gannett Co., owner of the News Journal. He left the eBay unit that operated what had been GSI early this year, according to published reports.
This response, according to a release from the U.S. Attorney’s office, led Saridakis to tell CW1 “you should.” CW1 responded with “ok,” to which Saridakis replied, “soon.” On March 22, 2011, prosecutors claimed that “following the receipt of the text messages, while in possession of the inside information, and knowing Saridakis’ position as a senior executive at GSIC, CW1 purchased and caused to be purchased 25,000 shares of GSIC stock on margin for approximately $470,000. On June 20, 2011, CW1 received $737,500 in exchange for the 25,000 shares of GSIC, equating to an illicit profit of $260,304, as a result of the text messages. Saridakis allegedly also shared the same material non-public information with family members and his neighbor.”
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $5 million fine, and a $100 special assessment. Such penalties are rarely imposed, with a plea bargain often worked out with lesser penalties, according to Philly.com. His attorney told Philly.com that he Sardakis was working to resolve the situation and expressed regret for his actions and their effect on family and friends.
The case is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
