UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16949/April 2, 2001
SECURITIES AND EXCHANGE COMMISSION v. ROBERT P. OLIVER, WALTER W.
WHITE, GERALD W. WHITE, HOWARD WHITE and DANIEL P. PATTON, United
States District Court for the Northern District of Texas, Dallas
Division, Civil Action No. 3 01-CV-0649-D
The Commission today filed an insider trading action in the United
States District Court for the Northern District of Texas, Dallas
Division, involving trading in the securities of Enserch Corporation
in advance of the April 15, 1996 announcement of its merger with Texas
Utilities. The Complaint alleges that
* Robert Oliver, an attorney, learned through his law firm of the
merger in advance of the public announcement.
* Oliver enlisted his friend Daniel Patton to purchase Enserch
securities and split the insider trading profits made in Patton's
account.
* Oliver tipped his friend Walter White and a second individual not
named in this Complaint, both of whom purchased Enserch securities
prior to the merger announcement. Walter White, in turn, tipped
his brother, Howard White, and father, Gerald White, each of whom
purchased Enserch stock and options prior to the announcement.
Finally, Gerald White caused additional Enserch trades to be made
by certain other individuals.
* Each of the above individuals profited from their trades in
Enserch as a result of the increase in the price of Enserch
securities after the merger announcement.
Each of the defendants has consented, without admitting or denying the
allegations of the Complaint, to the entry of an injunction
prohibiting future violations of Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder. Each defendant has
consented to entry of a judgment requiring disgorgement of trading
profits and the payment of civil penalties pursuant to Section 21A of
the Exchange Act as follows
Defendant Disgorgement Prejudgment Interest Civil Penalty
Robert Oliver $ 1,049.82 $ 515.06 $33,538.00
Daniel Patton $ 5,087.92 $ 1,636.01 $ 2,912.74
Walter White $28,500.00 $ 7,313.02 $28,500.00
Howard White $62,812.50 $16,117.51 $62,812.50
Gerald White $45,456.87 $11,664.10 $41,228.43
The Commission acknowledges the assistance of the New York Stock
Exchange in this matter.
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Commission today filed an insider trading action in the United States District Court for
Division, involving trading in the securities of Enserch Corporation in advance of the April
The Complaint alleges that * Robert Oliver, an attorney, learned through his law firm of the
* Oliver enlisted his friend Daniel Patton to purchase Enserch securities and split the
* Oliver tipped his friend Walter White and a second individual not named in this Complaint,
Walter White, in turn, tipped his brother, Howard White, and father, Gerald White, each of
Gerald White caused additional Enserch trades to be made by certain other individuals.
Each of the defendants has consented, without admitting or denying the allegations of the
Each defendant has consented to entry of a judgment requiring disgorgement of trading profits
Defendant Disgorgement Prejudgment Interest Civil Penalty
The Commission acknowledges the assistance of the New York Stock Exchange in this matter.
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