Thursday, March 15, 2007

Former CFO Settles SEC Insider Trading Case

The SEC is unleashing its insider trading cases with near abandon, filing and settling a case against the former CFO of a company who was working there as a consultant when he got wind of an impending takeover.  Melvyn C. Goldstein was CFO of Del Laboratories, Inc. until he retired in 1997, and he returned at the end of the quarters to help out the finance department (see SEC complaint here).  In 2004, he figured out that Del was in the process of being acquired by another company, and he bought shares a week before the announcement, realizing a $38,000 profit.  As part of the settlement, he will disgorge his profits and pay a one-time penalty plus interest, totaling $81,498.31, according to the Litigation Release (here).  The SEC Enforcement Division's current push on insider trading cases means that they will pursue even the small ones. (ph)

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Civil Enforcement, Insider Trading, Securities | Permalink

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The SEC announced on Wednesday that it had filed a settled insider trading action against a consultant to Del Laboratories, Inc., a manufacturer of cosmetics and over-the-counter pharmaceuticals. The consultant, who had formerly been the CFO of Del, al... [Read More]

Tracked on Mar 16, 2007 9:33:43 AM

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