September 30, 2008
SEC Settles Insider Trading Charges in ACR Group Stock
The SEC settled insider trading charges against Randolph Leone and Randall Clark Wall, both of whom, the SEC alleged, independently engaged in unlawful insider trading in the securities of ACR Group, Inc. in advance of a public announcement on July 5, 2007 that ACR Group had executed a definitive agreement with Watsco, Inc., a New York Stock Exchange issuer, pursuant to which Watsco would acquire ACR Group's outstanding common stock in a tender offer. The Commission alleged that Leone learned of the pending ACR Group/Watsco transaction when he overheard a telephone conversation between his wife and the wife of ACR Group's in-house general counsel telephoned (they are sisters). According to the SEC, Wall, a former employee of a supplier to both ACR Group and Watsco, learned of the pending ACR Group/Watsco transaction from his supervisor, who was informed of the deal, in confidence, by Watsco's senior vice president.
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