UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16325 / October 1, 1999
USDC/NDTX/DALLAS 3-99CIV2222-D
On September 30, 1999, the Commission filed a civil insider trading
case in the Northern District of Texas (Dallas Division) against Glen
Richard LeBlanc, William Scot Reinke and Timothy Alan Wilson.
Simultaneously with the filing of the Complaint, all defendants
consented to the entry of a Final Judgment on a neither admit nor deny
basis, which imposes an injunction against future violations of the
antifraud provisions of the federal securities laws and requires
LeBlanc, Reinke and Wilson to disgorge $5,625, $9,062.50 and $13,750,
respectively, plus prejudgment interest thereon, representing the
profits they made by trading in Fay's Inc. common stock while in
possession of material non-public information. The agreed Final
Judgment also orders LeBlanc, Reinke and Wilson to pay civil penalties
of $28,437.50, $9,062.50, and 13,750 respectively.
According to the Complaint, LeBlanc misappropriated material,
non-public information concerning J.C. Penney Company, Inc.'s
negotiations with and planned acquisition of Fay's, Inc., a small
Northeast regional drugstore chain, in June 1996. The Complaint
alleges that on or about June 10, 1996, LeBlanc, while in possession
of this information, purchased Fay's common stock and tipped this
information to Reinke and Wilson. The Complaint alleges that Reinke
and Wilson also purchased Fay's Inc. common stock between June 11 and
July 9, 1996, based upon the information received from LeBlanc.
On July 10, 1996, Fay's Inc. announced publicly that it was in merger
negotiations with Penney's and its subsidiary, Thrift Drugs, Inc.
Following this announcement, Fay's common stock priced increase 20
percent from $8.625 on July 9, 1996, to $10.375 for the two trading
days following the announcement. As a result of their trading prior to
the July 10, 1996 announcement, the Commission's Complaint alleges
that LeBlanc, Reinke and Wilson profited in the amounts of $5,625,
$9,062.50 and $13,750, respectively, in violation of Section 10(b) of
the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
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Modified 10/05/1999
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
On September 30, 1999, the Commission filed a civil insider trading case in the Northern
Simultaneously with the filing of the Complaint, all defendants consented to the entry of a
on-public information.
The agreed Final Judgment also orders LeBlanc, Reinke and Wilson to pay civil penalties of
According to the Complaint, LeBlanc misappropriated material, non-public information
The Complaint alleges that on or about June 10, 1996, LeBlanc, while in possession of this
On July 10, 1996, Fay's Inc. announced publicly that it was in merger negotiations with
As a result of their trading prior to the July 10, 1996 announcement, the Commission's
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