LegalCaseDocs.com
shopping cart  
  |     
Search
 

 
New Visitors


 VeriSign Secure Site

 Get Adobe Reader

SEC v ROBERT K. GASPER and JAMES D. FAIRFIELD Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16972, Defendant: Robert K. Gasper and James D. Fairfield, Plaintiff: SEC, State: ME Maine, UniqueCaseRef: SEC>LR-16972, Gasper, Fairfield, Cmp, Central Maine, Complaint, Profits, Trading, Cmp Stock, Trade, Alleges, Merger, Disgorge, Securities, Exchange Commission, Employees, Insider Trading, Plan, Illegal Profit, Energy East, Central Maine Power, Filing, Assets, Cmp Stock Fund, Resident, Manager, Admitting, Denying, Allegations, Supervisor , ContentID: 120241142

Case Documents
1 2001-04-23 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104235
2 pages
TXT
Total Documents: 1 document , 2 pages
Price: $ 19.95


IVESLCD01 KGI0001
 
 

 Forgot your password?


1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
FAIRFIELD
CMP
CENTRAL MAINE
COMPLAINT
PROFITS
TRADING
CMP STOCK
TRADE
ALLEGES
MERGER
DISGORGE
SECURITIES
EXCHANGE COMMISSION
EMPLOYEES
INSIDER TRADING
PLAN
ILLEGAL PROFIT
ENERGY EAST
MEETING
CENTRAL MAINE POWER
FILING
ASSETS
CMP STOCK FUND
RESIDENT
MANAGER
ADMITTING
DENYING
ALLEGATIONS
SUPERVISOR
   SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16972 / April 23, 2001

   SEC CHARGES TWO MORE CENTRAL MAINE POWER EMPLOYEES WITH INSIDER
   TRADING THROUGH 401(k) PLAN

   The Securities and Exchange Commission today announced the filing of
   an injunctive action against Robert K. Gasper and James D. Fairfield
   for illegal insider trading in the common stock of CMP Group, Inc. The
   complaint alleges that Gasper and Fairfield, former employees of
   Central Maine Power Company, a subsidiary of CMP, invested all of the
   assets in their 401(k) plans in a CMP stock fund on June 14, 1999. The
   next day, CMP publicly announced its plan to merge with Energy East
   Corporation and the price of CMP stock rose approximately 28%. Gasper,
   who invested $336,528, made an illegal profit of $88,604 and
   Fairfield, who invested $304,556, made an illegal profit of $80,186.
   Gasper, a resident of Manchester Maine, was the Manager of
   Interconnection Agreements Administration for Central Maine.
   Fairfield, a resident of West Gardiner, Maine, was the Manager of
   Legislative Affairs for Central Maine. Gasper and Fairfield have both
   agreed to settle the action without admitting or denying the
   Commission's allegations.

   The Commission's complaint alleges that Gasper and Fairfield were in
   possession of nonpublic information about the merger at the time of
   their trades. According to the complaint, Gasper first learned about
   the planned merger in late April or early May 1999 when Energy East
   was conducting due diligence. Gasper was asked to retrieve information
   for a "top secret" project and, by his own admission, correctly
   concluded that someone was "looking at the company." On the day of
   Gasper's trade, Gasper's supervisor scheduled a highly unusual meeting
   for 4 01 p.m. After learning of the meeting, Gasper concluded that a
   buyout announcement was imminent and executed his trade.

   The complaint also alleges that Gasper tipped Fairfield. On the day of
   their trades, Fairfield telephoned Gasper shortly before the close of
   the market. Gasper informed Fairfield of the unusual 4 01 p.m.
   meeting, stated that the acquisition of CMP might be announced, and
   told Fairfield that he was going to transfer all of his 401(k) assets
   to the CMP stock fund. Minutes after the conversation, Fairfield
   executed his trade. The complaint also alleges that during the week
   prior to the merger announcement, Fairfield's supervisor had cautioned
   Fairfield about trading in CMP stock.

   Simultaneously with the filing of the complaint, Gasper and Fairfield,
   without admitting or denying the Commission's allegations, consented
   to the entry of a judgment permanently enjoining them from violating
SNIPPETS:
  • TRADING THROUGH 401PLAN
  • The Securities and Exchange Commission today announced the filing of an injunctive action
  • The complaint alleges that Gasper and Fairfield, former employees of Central Maine Power
  • CMP publicly announced its plan to merge with Energy East Corporation and the price of CMP
  • Gasper, who invested $336,528, made an illegal profit of $88,604 and Fairfield, who invested
  • Gasper, a resident of Manchester Maine, was the Manager of Interconnection Agreements
  • The Commission's complaint alleges that Gasper and Fairfield were in possession of nonpublic
  • Gasper first learned about the planned merger in late April or early May 1999 when Energy
  • After learning of the meeting, Gasper concluded that a buyout announcement was imminent and
  • The complaint also alleges that during the week prior to the merger announcement, Fairfield's
  • Simultaneously with the filing of the complaint, Gasper and Fairfield, without admitting or
  • Gasper agreed to disgorge $168,790, representing his profits and his tippee Fairfield's
  • This is the second insider trading action brought against Central Maine employees arising
  •    |