Thursday, August 30, 2007
On August 29, 2007, the United States District Court for the Southern District of Ohio entered a Final Judgment against Defendants Arnold L. Jack, a resident of Columbus, Ohio, and Black-Jack Enterprises, an Ohio partnership owned by Jack and co-defendant Roger D. Blackwell, for illegal insider trading in the stock of Worthington Foods, Inc. The Court's Judgment enjoined Jack and Black-Jack from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and ordered Jack to pay a civil penalty in the amount of $31,146.35. Jack and Black-Jack settled the Commission's claims without admitting or denying the allegations of the Complaint.
The Complaint alleges that Defendants Jack and Black-Jack committed illegal insider trading when they traded Worthington Foods, Inc. ("Worthington") stock after they were tipped by Blackwell about the Kellogg Company's 1999 acquisition of Worthington. The Complaint further alleged that Arnold L. Jack has been Roger Blackwell's close friend, business partner and attorney for about 30 years. Blackwell has separately agreed to pay the full disgorgement and prejudgment interest attributable, to Jack and Black-Jack. The illegal profits attributable to Jack and Black-Jack total, respectively, $31,146.35 and $26,884.74.