Former Tech Data Sales Manager Accused of Insider Trading

Tech Data GE Capital

The Securities and Exchange Commission filed charges on Wednesday in federal court in San Diego against Thomas Johnson and Michael Dickman.

Johnson was a national account manager in Tech Data's sales department in 1999 and is accused of informing Dickman in May 1999 that Tech Data planned to announce a three-year contract to build and distribute computers for GE Capital ITS, according to the civil complaint.

On May 19, 1999, Dickman bought $675,000 in Tech Data stock using confidential information from Johnson, the complaint alleges.

Dickman then profited $105,693 when Tech Data's stock went up following the public announcement May 20, 1999, according to the complaint. Dickman allegedly paid Johnson about $24,000 as part of the arrangement, according to the complaint.

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The SEC is seeking restitution plus interest, plus fines, from Johnson and Dickman.

At the time, the Tech Data-GE Capital ITS outsourcing deal was hailed as the largest of its kind and would represent a model that other large integrators would follow.

But the deal was only exclusive for one year, and GE Capital ITS named Ingram Micro as a primary distribution source in October 2000.

Johnson lives in San Diego, where he was a housemate of Dickman's in 1999, according to the SEC. Dickman is currently incarcerated at the Federal Correctional Institution in Phoenix.

Dickman, Johnson and executives at Tech Data could not be reached for comment.