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SEC v LINDSEY and PERZ Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16703, Defendant: Lindsey and Perz, Plaintiff: SEC, State: IL Illinois, UniqueCaseRef: SEC>LR-16703, Lindsey, Perz, Marquette, Commission, Alleges, Securities, Trading, Exchange Commission, Wisconsin, Complaint Alleges, Illinois, Civil, District, Permanent, Insider Trading, Resident, Milwaukee, Violations, Purchase, Price, Chairman, Acquisition, Shares, Stock, Possession, Prior, Fiduciary Duty, Marquette Shareholders, Disclosing, Securities Exchange Act , ContentID: 120241409

Case Documents
1 2000-09-15 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104502
2 pages
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Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
PERZ
MARQUETTE
COMMISSION
ALLEGES
SECURITIES
TRADING
EXCHANGE COMMISSION
WISCONSIN
COMPLAINT ALLEGES
ILLINOIS
CIVIL
DISTRICT
PERMANENT
INSIDER TRADING
RESIDENT
MILWAUKEE
VIOLATIONS
PURCHASE
PRICE
CHAIRMAN
ACQUISITION
SHARES
STOCK
POSSESSION
PRIOR
FIDUCIARY DUTY
MARQUETTE SHAREHOLDERS
DISCLOSING
SECURITIES EXCHANGE ACT
   SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16703 / September 15, 2000

   SEC v. Lindsey and Perz, (U.S.D.C. N.D. Illinois, Civil Action No.
   00-C-5539, filed September 8, 2000)

   The U.S. Securities and Exchange Commission ("Commission") announced
   that on September 14, 2000, the Honorable Charles R. Norgle, U.S.
   District Judge for the Northern District of Illinois, entered a Final
   Order and Permanent Injunction ("Order") in an insider trading case
   against Kevin L. Lindsey ("Lindsey"), a resident of Milwaukee,
   Wisconsin, and Thomas R. Perz ("Perz"), a resident of Waukesha,
   Wisconsin, which permanently enjoined Lindsey and Perz from further
   violations of the antifraud provisions of the federal securities laws.
   The Order also imposed a civil penalty of $386,875 on both Lindsey and
   Perz, and directed Perz to surrender $386,875 in trading profits plus
   $60,687.11 in prejudgment interest. Perz and Lindsey consented to the
   entry of the Order without admitting or denying the allegations in the
   Complaint.

   The Commission alleges that Lindsey and Perz engaged in insider
   trading in the securities of Marquette Medical Systems, Inc.
   ("Marquette"), a manufacturer of medical equipment located in
   Milwaukee, Wisconsin. In July 1998, Marquette entered into discussions
   with General Electric Co. ("GE") about GE acquiring Marquette. As
   Marquette's Corporate Comptroller and Vice President of Business
   Development, Lindsey was kept informed of the progress of these
   discussions. The Commission alleges that by August 27, 1998, Lindsey
   knew that GE and Marquette were apart by only $10 per share in terms
   of purchase price, that GE had suggested that they split the
   difference, and that Marquette's Chairman of the Board and GE's
   Chairman of the Board were scheduled to meet in September to resolve
   the difference in price.

   The Commission alleges that Lindsey tipped his friend Perz about the
   upcoming acquisition of Marquette by GE. The Commission further
   alleges that Perz purchased 10,000 shares of Marquette stock on
   September 9, 1998 and another 10,000 on September 16, 1998 while in
   possession of this information. On September 21, 1998, Marquette
   announced its acquisition by GE for $45 per share. Prior to the
   announcement, Marquette's shares were trading in the $22.75 to $27.375
   range. After the announcement, Perz's stock gained $386,875 in value.
   The Complaint alleges that Lindsey breached his fiduciary duty to
   Marquette shareholders by disclosing this information. The Complaint
   alleges that Lindsey and Perz violated Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
     _________________________________________________________________
SNIPPETS:
  • SECURITIES AND EXCHANGE COMMISSION
  • SEC v. Lindsey and Perz,
  • N.D. Illinois, Civil Action No. 00-C-5539, filed September 8, 2000)
  • The Order also imposed a civil penalty of $386,875 on both Lindsey and Perz, and directed
  • The Commission alleges that Lindsey and Perz engaged in insider trading in the securities of
  • The Commission alleges that by August 27, 1998, Lindsey knew that GE and Marquette were apart
  • The Commission alleges that Lindsey tipped his friend Perz about the upcoming acquisition of
  • The Commission further alleges that Perz purchased 10,000 shares of Marquette stock on
  • Prior to the announcement, Marquette's shares were trading in the $22.75 to $27.375 range.
  • The Complaint alleges that Lindsey breached his fiduciary duty to Marquette shareholders by
  • The Complaint alleges that Lindsey and Perz violated Section 10of the Securities Exchange Act
  •    |