Tuesday, March 1, 2005
Criminal and Civil Insider Trading Charges Against Gerber Scientific Director of Corporate Communications
The former director of corporate communications for Gerber Scientific, Inc., Robert Goehring, was indicted in the Southern District of New York and charged in a civil complaint filed by the SEC in Connecticut with trading on material nonpublic information prior to its release by the company, resulting in gains and losses avoided of approximately $94,000. Goehring is also accused of tipping a close friend who traded in Gerber Scientific shares with a gain and loss avoided of approximately $11,000. The SEC Litigation Release states:
Between July 1998 and April 2000, Goehring traded in the Gerber stock nine times on the basis of material, nonpublic information he obtained in the course of his employment as Gerber's director of corporate communications. Goehring enjoyed profits and avoided losses from these illicit trades of $94,016. In addition, Goehring tipped his close friend, Armund Ek, who was not employed at Gerber, with material, non-public information about Gerber on three occasions. Ek bought and sold Gerber stock based on these tips and had profits and avoided losses totaling $11,453 as a result of his trading.
Ek settled with the SEC (Litigation Release here), disgorging the $11,453 and paying a civil money penalty of a little less than $11,000; he was not charged in the criminal case. (ph)