March 9, 2010
SEC Brings Reg FD Charges Against Presstek and Former CEO
The SEC brought Regulation FD charges against Presstek, Inc. ("Presstek"), a Greenwich, Connecticut based manufacturer and distributor of high-technology digital imaging equipment, and its former chief executive officer, Edward J. Marino, of Boston, Massachusetts.
The Commission's complaint alleges that on September 28, 2006, while acting on behalf of Presstek, Marino selectively disclosed material non-public information regarding Presstek's financial performance during the third quarter of 2006 to a managing partner of a registered investment adviser. In addition, the complaint alleges that within minutes of receiving the information from Marino, the partner decided to sell all of the shares of Presstek stock managed by the investment adviser. The complaint also alleges that Presstek did not simultaneously disclose to the public the information provided by Marino to the partner.
Presstek has agreed to settle the Commission's charges, without admitting or denying the allegations in the complaint, by consenting to an order that enjoins Presstek from further violations of Regulation FD and Section 13(a) of the Exchange Act and directs it to pay a $400,000 civil penalty. The Commission took into account certain remedial measures taken by Presstek, including revising its corporate communications policies and corporate governance principles, replacing its management team and appointing new independent board members, and creating a whistleblower's hotline.
In the ongoing civil action against Marino, the Commission is seeking injunctive relief and the imposition of civil penalties.
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