MIAMI – The Securities and Exchange Commission recently accused Federico Nannini of insider training while his firm consulted for Coral Gables-based MasTec a few years ago. The investigation resulted in him, his father, and two friends facing civil and criminal charges.
According to the SEC, Nannini, 26, shared confidential information about MasTec’s proposed acquisition of Infrastructure and Energy Alternative, or IEA, with his father, Mauro Nannini, on June 8, 2022.
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Investigators reported Nannini, 26, also tipped Alejandro Thermiotis, a friend he met at Gulliver Prep in Pinecrest, on June 15, 2022. Records show Thermiotis then tipped Francisco Tonarely, a mutual friend from Gulliver Prep, and wrote in a text message, “Not a soul okay.”
According to the indictment, Tonarely allegedly responded, “Obviously ... You told me not to.”
According to the SEC, Nannini, 63, purchased 34,500 shares of IEA stock for about $310,730; Thermiotis bought over $1.6 million; and Tonarely, 25, bought 321. Investigators found Nannini, 63, later ended up selling and buying again.
According to prosecutors, when Nannini, 26, feared the acquisition would not go through his father reacted by selling, and when Nannini, 26, believed the acquisition was going forward, his father bought back his position in IEA stock and options.
“Its going thru ... Holy [expletive] bro,” Nannini, 26, wrote to Thermiotis in a text message; and Thermiotis then wrote, “Don’t text ... But lfg,” according to the indictment.
MasTec announced the IEA acquisition on July 25, 2022. According to the SEC, IEA’s stock price increased by over 31% and when Nannini, 63, Thermiotis, and Tonarely sold all of their IEA securities they earned about $1.1 million.
According to the indictment, Tonarely’s family member signed a letter sponsoring Thermiotis’s membership at a Miami yacht club, and Nannini, 26, sent Thermiotis a picture of a Rolex Cosmograph Daytona. Here is their exchange according to investigators:
“You wanna hook it up for the boy. I know it’s a little over budget but this is the one,” Nannini, 26, wrote.
“Haahaha yeah but give it a bit ... Prices should come down a bit on everything,” Thermiotis wrote in response.
SEC Miami investigators worked with FBI Miami special agents to arrest the four of them. Eric I. Bustillo, the director of SEC Miami, released a statement Friday after their arrest saying the first rule of “material nonpublic information” is to not talk about it.
“Federico Nannini broke the rule and federal law when he shared information about MasTec’s probable acquisition of IEA with his dad and high school buddy,” Bustillo said. “This case underscores our steadfast commitment to expose insider trading and to hold violators, including financial professionals, accountable for their actions.”
In a complaint filed on Friday, the SEC accused Nannini, 26; Nannini, 63; Thermiotis; and Tonarely of violating the antifraud provisions of the federal securities laws and is seeking injunctive relief and civil penalties against the four, and disgorgement with prejudgment interest against Nannini, 63, Thermiotis, and Tonarely.
In criminal federal court, the four defendants faced one count of conspiracy to commit securities fraud and 24 counts of securities fraud.
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