U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16398 / January 4, 2000
SECURITIES AND EXCHANGE COMMISSION v. MICHELLE NGUYEN, LISA NGUYEN AND
HAO VU, Civil Action No. SACV 99-830 AHS (ANx) (C.D. Cal.)
The Securities and Exchange Commission ("Commission") announced that
on November 18, 1999, the Honorable Alicemarie H. Stotler, United
States District Judge for the Central District of California, entered
final judgments of permanent injunction and other relief against
Michelle Nguyen ("Nguyen") and her sister and brother, Lisa Nguyen
("L. Nguyen") and Hao Vu ("Vu"), all of whom are residents of Orange
County, California. The final judgments permanently enjoin Nguyen, L.
Nguyen and Vu from future violations of the antifraud provisions of
the federal securities laws and require payment of disgorgement of and
interest on insider trading profits plus civil penalties. Nguyen, L.
Nguyen and Vu consented to the entry of the final judgments without
admitting or denying the allegations in the Commission's complaint.
In its complaint, the Commission alleged that the three defendants
purchased Trimedyne stock based upon nonpublic information about an
action taken by the Food and Drug Administration ("FDA"). In March
1996, the FDA cleared Trimedyne to market a medical laser (the
"Urolase") for the treatment of prostate enlargement. One week later,
Trimedyne publicly announced that clearance. Nguyen was Trimedyne's
controller, and in that capacity, learned that the company had
received notice from the FDA that the clearance to market the Urolase
was "imminent." After learning that FDA clearance was imminent, Nguyen
purchased 1,000 shares of Trimedyne stock. One day after the company
received the FDA clearance, but prior to any public announcement of
the development, Nguyen purchased an additional 1,100 shares of
Trimedyne stock in her daughter's account. Nguyen purchased an
additional 2,000 shares of Trimedyne stock in her own account in the
week prior to the company's public announcement of the FDA clearance.
The Commission also alleged that, in addition to trading on her own
behalf, Nguyen tipped her sister and brother about the FDA clearance.
On the same day Nguyen made her second purchase of Trimedyne stock,
her sister, L. Nguyen, purchased 4,966 shares of Trimedyne stock in
four different accounts, and her brother, Vu, purchased 4,000 shares
of Trimedyne stock. After the announcement, Nguyen, L. Nguyen and Vu
sold all of their shares of Trimedyne stock, making a combined profit
of $82,967.87.
Nguyen, L. Nguyen and Vu, without admitting or denying the allegations
in the complaint, consented to entry of judgments permanently
enjoining them from future violations of Section 17(a) of the
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. MICHELLE NGUYEN, LISA NGUYEN AND HAO VU, Civil Action
The Securities and Exchange Commission announced that on November 18, 1999, the Honorable
Nguyen") and Hao Vu, all of whom are residents of Orange County, California.
The final judgments permanently enjoin Nguyen, L. Nguyen and Vu from future violations of the
L. Nguyen and Vu consented to the entry of the final judgments without admitting or denying
In its complaint, the Commission alleged that the three defendants purchased Trimedyne stock
the FDA cleared Trimedyne to market a medical laser (the "Urolase") for the treatment of
After learning that FDA clearance was imminent, Nguyen purchased 1,000 shares of Trimedyne
One day after the company received the FDA clearance, but prior to any public announcement of
The Commission also alleged that, in addition to trading on her own behalf, Nguyen tipped her
On the same day Nguyen made her second purchase of Trimedyne stock, her sister, L. Nguyen,
After the announcement, Nguyen, L. Nguyen and Vu sold all of their shares of Trimedyne stock,
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