Thursday, October 25, 2012
The SEC has agreed to settle insider trading charges against Frank A. LoBue, a former Director of Store Operations at J.Crew Group, Inc. (J.Crew). According to its complaint, LoBue used material, nonpublic information about sales and expenses of the company’s stores to purchase J.Crew common stock in advance of earnings announcements in May and August 2009. The Commission’s complaint alleges that in the course of his employment LoBue regularly received nonpublic information about J.Crew’s “Stores” component, which comprised approximately 70% of the company’s sales and used this information on two occasions to purchase shares in advance of the company's earnings releases.
LoBue has consented to the entry of a proposed final judgment permanently enjoining him from further violations; ordering him to pay disgorgement of $60,735.60, plus prejudgment interest thereon of $6,749.33; and imposing a civil penalty in the amount of $60,735.60. The proposed settlement is subject to the approval of the District Court.