SECURITIES AND EXCHANGE COMMISSION
SEC v. Nick L. Skansi, et al., 98 Civ. 1001, USDC (E.D. La.)
Litigation Release No. 16675 / September 1, 2000
The Securities and Exchange Commission ("Commission") announced that
on August 18, 2000, the Honorable Ivan L. R. Lemelle, U.S. District
Court Judge for the Eastern District of Louisiana, entered a Final
Judgment of Permanent Injunction ("Final Judgment") against Nick L.
Skansi and David J. Skansi, both residents of New Orleans, Louisiana.
The Final Judgment was entered following a jury trial on January
24-27, 2000, at which Nick L. Skansi and David J. Skansi were found to
have engaged in insider trading in the securities of Freeport-McMoRan
Oil and Gas Royalty Trust ("FMR") when they purchased FMR securities
prior to FMR's announcement in June 1994 of a large oil discovery in
the Gulf of Mexico in which FMR held a royalty interest. The jury also
found that Chok-Tat Tan, Jody L. Lafont and George S. Pharis were not
liable for insider trading when they purchased FMR securities in June
1994.
The Court permanently enjoined Nick L. Skansi and David J. Skansi from
further violations of Section 10(b) of the Securities Exchange Act of
1934 ("Exchange Act"), 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated
thereunder, 17 C.F.R. § 140.10b-5. The Court also ordered them to pay
the disgorgement of illicit profits, prejudgment interest, and civil
penalties, in the following amounts Nick L. Skansi, $53,579.90; David
J. Skansi, $31,323.30.
Immediately before trial commenced, the Commission reached a
settlement with Nick A. Skansi, who consented to a final judgment that
permanently enjoined him from violating the antifraud provisions of
the Exchange Act, and ordered him to pay disgorgement of illicit
profits, prejudgment interest, and civil penalties of $37,498.51.
Previously, the Commission had announced that it had reached
settlements with the other defendants in this action, David R.
Pfister, Richard G. Pfister, Ty Bartel, Jeffrey J. Jandegian and
Randolph R. Blackburn.
The Commission expresses its appreciation to the New York Stock
Exchange, Inc. for assistance in the investigation of this matter.
_________________________________________________________________
Modified 09/01/2000
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SEC v. Nick L. Skansi, et al., 98 Civ.
The Securities and Exchange Commission announced that on August 18, 2000, the Honorable Ivan
The Final Judgment was entered following a jury trial on January 24-27, 2000, at which Nick
The Court permanently enjoined Nick L. Skansi and David J. Skansi from further violations of
Immediately before trial commenced, the Commission reached a settlement with Nick A. Skansi,
Previously, the Commission had announced that it had reached settlements with the other
The Commission expresses its appreciation to the New York Stock Exchange, Inc. for assistance
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