The Securities and Exchange Commission charged four men on July 17, 2026, with insider trading ahead of Desktop Metal’s acquisition of The ExOne Company. Ali El Siblani, a senior executive at Desktop Metal, allegedly tipped three friends with material nonpublic information about the August 2021 deal. The tippees then purchased ExOne securities and pocketed nearly $500,000 in combined profits before the public announcement.
What happened
Ali El Siblani served as a senior executive and director at Desktop Metal, a 3D printing company based in Massachusetts. According to the SEC complaint, El Siblani learned confidential details about Desktop Metal’s plan to acquire ExOne, a rival in the additive manufacturing space. He allegedly shared this information with Jamal “Jimmy” Chammout, Ali Jawad, and Rabih Rakha, all residents of Michigan.
The three tippees purchased ExOne securities in advance of the August 11, 2021 public announcement. After Desktop Metal disclosed the acquisition at a premium to market price, the defendants sold their positions and realized substantial gains.
Key facts and dollar amounts
The SEC Litigation Release LR-26589 outlines specific profit figures for each defendant. The combined illicit trading profits exceeded $497,000.
| Defendant | Role | Illicit Profits |
| Jamal “Jimmy” Chammout | Tippee / trader | $218,036 |
| Ali Jawad | Tippee / trader | $218,082 |
| Rabih Rakha | Tippee / trader | $61,006 |
| Ali El Siblani | Tipper / executive | Civil penalty $497,124 |
El Siblani also faces a four-year officer and director bar prohibiting him from serving in those roles at any public company. The proposed final judgments for Jawad and Rakha include disgorgement, prejudgment interest, and civil penalties matching their profits.
The ExOne acquisition context
Desktop Metal announced its acquisition of ExOne on August 11, 2021. The deal valued ExOne at a significant premium to its prior closing price. ExOne specialized in binder jetting and sand printing technologies used in industrial manufacturing. Desktop Metal sought to consolidate its position in the additive manufacturing sector through the purchase.
Insider trading cases involving merger announcements are a priority for SEC enforcement staff. The agency routinely monitors trading activity in target companies ahead of deal announcements. Tipper-tippee liability extends to both the person who shared the information and those who traded on it.
Penalties and legal consequences
The proposed settlements for El Siblani, Jawad, and Rakha remain subject to court approval. Chammout is charged in the complaint but his settlement terms were not disclosed in the litigation release. All four defendants are accused of violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.
The SEC’s disgorgement orders require defendants to return ill-gotten gains plus prejudgment interest. Jawad faces a total financial obligation of $508,528, including $218,082 in disgorgement, $72,364 in prejudgment interest, and a $218,082 civil penalty. Rakha owes $142,255 total, comprising $61,006 in disgorgement, $20,243 in prejudgment interest, and a $61,006 civil penalty.
What investors should know about tipper-tippee liability
Securities law treats both the person who shares material nonpublic information and those who trade on it as liable for insider trading. Friends and family members who receive tips from corporate insiders are not exempt from enforcement action. The SEC has brought numerous cases against social-network tippees in recent years.
Corporate insiders with access to merger information should understand that sharing details with anyone can trigger liability. Even casual conversations at social events can form the basis for an SEC complaint. The agency routinely examines trading patterns in target companies ahead of acquisition announcements.
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