Wednesday, June 22, 2005

Ohio State Professor Convicted of Insider Trading

Dr. Roger D. Blackwell, a professor of marketing at Ohio State University, was convicted of 14 counts of insider trading, conspiracy, and obstructing an SEC investigation into trading in the securities of Worthington Foods through the use of information he gained while a member of the company's board of directors.  Two other defendants convicted were an employee of his consulting firm, Roger Blackwell Associates, Inc., and her husband.  A Blackwell Associates website (here) describes Dr. Blackwell:

Roger Blackwell was named "Outstanding Marketing Educator in America" by Sales and Marketing Executives International and "Marketer of the Year" by the American Marketing Association. He also received the "Alumni Distinguished Teaching Award", the highest award given by The Ohio State University. After 30 years at the university and recently receiving two additional teaching awards, his depth of knowledge and enthusiasm for teaching still make him a favorite among students.

A press release issued by the U.S. Attorney's Office for the Southern District of Ohio (here) states that the judge ordered Blackwell to post a $1 million cash bond within 24 hours to remain free until sentencing.  An SEC civil insider trading suit against Blackwell and others (complaint here) filed in January 2003 alleges that the defendants made $245,000 from trading in Worthington Foods based on a proposed acquisition of the company. 

A check of the Ohio State University marketing department website (here) notes that Dr. Blackwell received "the 16th Annual Mortar Board and Sphinx Faculty and Staff Recognition event held Mar. 8, 2005. Students who are senior honorees nominate university personnel who made a difference in their lives on campus. Douglas Hange, stated that Dr. Blackwell's '. . .ability to give real-world examples relating to business and marketing help to make class concepts come to life.'" An insider trading conviction certainly is a real-world example.

Dale Oesterle on the Business Law Prof blog, who is also on the Ohio State University faculty (in the law school, not the business school), has an interesting post (here) on Blackwell's role on the campus. (ph)

Fraud, Insider Trading, Prosecutions | Permalink

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