Thursday, August 16, 2007
The SEC announced a settlement imposing Remedial Sanctions against Joseph A. Frohna, a former portfolio manager with U.S. Bancorp Asset Management, Inc. The SEC's complaint alleged that Frohna engaged in insider trading by having the mutual fund that he managed sell all of its shares of XOMA, Ltd. on the basis of material, nonpublic information that he obtained from his brother, who was leading a joint drug study for XOMA and another pharmaceutical company. As a result of Frohna's insider trading, the mutual fund that he managed avoided a loss of $954,776. Based on the above, the Order suspends Frohna from association with any investment adviser for a period of twelve months. Frohna consented to the issuance of the Order without admitting or denying the findings in the Order, except he admitted the entry of the injunction.