SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 16691 / September 7, 2000
SECURITIES AND EXCHANGE COMMISSION v. DAVID W. HALL, et al, Civil
Action No. 98-10325AAH (C.D. Cal.) (filed December 22, 1998)
The Commission announced today that David W. Hall, William A. Hall,
William Y. Hall and Alan Salem agreed to settle charges alleging
insider trading in the securities of Norand Corporation. On December
22, 1998, the Commission filed a complaint in the United States
District Court for the Central District of California alleging that
Robert Neprud, an assistant controller at Western Atlas, Inc.,
misappropriated confidential client information by tipping David W.
Hall about Western Atlas's upcoming tender offer for Norand prior to
the official announcement on January 22, 1997. The complaint also
alleged that David Hall knew that Neprud was an executive at Western
Atlas, the acquiring company, and knew that Neprud's disclosure
violated duties he owed to Norand. The complaint alleges that David
Hall purchased Norand stock and made $48,000 in profits. The complaint
further alleges that David Hall tipped his father, his brother, his
cousin, Thomas Wagner, and Wagner's father-in-law, Alan Salem. On
January 13 or 14, 1997, David Hall shared with both his father,
William A. Hall, and his brother, William Y. Hall, neither of whom had
ever bought stock before, the information he learned from Neprud.
William A. Hall and William Y. Hall that the information he had
acquired from David Hall was material and nonpublic, and that it had
been conveyed to David Hall in breach of a duty of trust and
confidence.
According to the complaint, William A. Hall and William Y. Hall made
total profits of $173,283 and $15,259, respectively, and Wagner made
$7,937 in trading profits. The complaint also alleged that Alan Salem
purchased Norand and Western Atlas securities, making $77,875 in
profits, and caused four other individuals to trade, for total profits
of approximately $249,000.
David Hall consented, without admitting or denying the Commission's
allegations, to a final judgment entered on February 1, 2000 (1)
permanently enjoining him from violating Sections 10(b) and 14(e) of
the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5
and 14e-3 thereunder; and (2) ordering Hall to pay disgorgement and
prejudgment interest of $60,000.
Salem consented, without admitting or denying the Commission's
allegations, to a final judgment entered on June 1, 2000 (1)
permanently enjoining him from violating Sections 10(b) and 14(e) of
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. DAVID W. HALL, et al, Civil Action No. 98-10325AAH (C.D.
The Commission announced today that David W. Hall, William A. Hall, William Y. Hall and Alan
The complaint also alleged that David Hall knew that Neprud was an executive at Western
The complaint alleges that David Hall purchased Norand stock and made $48,000 in profits.
The complaint further alleges that David Hall tipped his father, his brother, his cousin,
The complaint also alleged that Alan Salem purchased Norand and Western Atlas securities,
David Hall consented, without admitting or denying the Commission's allegations, to a final
Salem consented, without admitting or denying the Commission's allegations, to a final
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