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SEC v ROBERT A. KARGL, DAVID K. STENSLIE, et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16319, CourtCode: DIS, CourtName: STENSLIE, AND MONICA M. OLEARY, U.S. DISTRICT COURT FOR THE EASTERN, Defendant: Robert A. Kargl, David K. Stenslie, and Monica M. OLeary, Plaintiff: SEC, State: WI Wisconsin, UniqueCaseRef: SEC>LR-16319, Sullivan Dental/henry, Kargl, Stenslie, Purchases, Sullivan Dental Stock, Exchange, Merger, Civil Penalties, Non-public Information, Exchange Commission, Securities, District, Wisconsin, Complaint, Exchange Act, Judgement, Pay Disgorgement, Prejudgment, Thereon, District Court, Alleges, Henry Schein, Impending Merger, Resident, Violations, Thereunder, Negotiations, Tippees, Trading, Profits , ContentID: 120241791

Case Documents
1 1999-09-30 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104884
2 pages
HTML
Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
KARGL
STENSLIE
PURCHASES
SULLIVAN DENTAL STOCK
EXCHANGE
MERGER
CIVIL PENALTIES
NON-PUBLIC INFORMATION
EXCHANGE COMMISSION
SECURITIES
DISTRICT
WISCONSIN
COMPLAINT
EXCHANGE ACT
JUDGEMENT
PAY DISGORGEMENT
PREJUDGMENT
THEREON
DISTRICT COURT
ALLEGES
HENRY SCHEIN
IMPENDING MERGER
RESIDENT
VIOLATIONS
THEREUNDER
NEGOTIATIONS
TIPPEES
TRADING
PROFITS
   SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16319 / September 30, 1999

   Securities and Exchange Commission v. Robert A. Kargl, David K.
   Stenslie, and Monica M. O'Leary, U.S. District Court for the Eastern
   District of Wisconsin, Civil Action No. 99-C-1142

   The Securities and Exchange Commission announced that it filed a
   complaint in the United States District Court for the Eastern District
   of Wisconsin on September 28, 1999 against Robert A. Kargl ("Kargl"),
   a resident of Greenfield, Wisconsin, and David K. Stenslie
   ("Stenslie") and Monica M. O'Leary ("O'Leary"), residents of
   Germantown, Wisconsin. The complaint alleges that Kargl, Stenslie and
   O'Leary violated Section 10(b) of the Securities Exchange Act of 1934
   ("Exchange Act") and Rule 10b-5 thereunder in connection with their
   purchase and/or tipping others to purchase the stock of Sullivan
   Dental Products, Inc. ("Sullivan Dental"), while they were in
   possession of material, non-public information regarding Sullivan
   Dental.

   In its complaint, the Commission alleges that in July 1997, Sullivan
   Dental and Henry Schein were engaged in negotiations regarding a
   merger between the two companies. At that time, Kargl was the
   controller of Sullivan Dental, and Stenslie was the director of
   management information systems at Sullivan Dental. During the first
   two weeks of July 1997, Kargl and Stenslie were informed of the merger
   negotiations in the course of their job duties at Sullivan Dental, and
   both Kargl and Stenslie communicated material, non-public information
   about the impending merger to O'Leary. The Commission further alleges
   that shortly thereafter, Kargl purchased Sullivan Dental stock, and
   O'Leary purchased Sullivan Dental stock on Kargl's behalf with money
   that Kargl had given O'Leary for this purpose. In addition, Kargl
   communicated material, non-public information about the impending
   merger to a relative and two low level Sullivan Dental employees, who
   also purchased Sullivan Dental stock. Also in July of 1997, Stenslie
   communicated material, non-public information about the impending
   merger to a relative, who purchased Sullivan Dental stock. Further,
   O'Leary herself purchased Sullivan Dental stock and tipped a relative,
   who also purchased Sullivan Dental stock. On August 4, 1997, Sullivan
   Dental publicly announced that it had definitively agreed to a
   stock-for-stock merger with Henry Schein, and Sullivan Dental stock
   closed at $28.50 per share, an increase of $6.25 from its previous
   closing price. Kargl, Stenslie, O'Leary, and their tippees received
   approximately $38,073.75 in realized and unrealized trading profits
   from their purchases of Sullivan Dental stock.

   Kargl, Stenslie and O'Leary have consented, without admitting or
SNIPPETS:
  • SECURITIES AND EXCHANGE COMMISSION
  • Securities and Exchange Commission v. Robert A. Kargl, David K. Stenslie, and Monica M.
  • The Securities and Exchange Commission announced that it filed a complaint in the United
  • The complaint alleges that Kargl, Stenslie and O'Leary violated Section 10of the Securities
  • In its complaint, the Commission alleges that in July 1997, Sullivan Dental and Henry Schein
  • During the first two weeks of July 1997, Kargl and Stenslie were informed of the merger
  • The Commission further alleges that shortly thereafter, Kargl purchased Sullivan Dental
  • Kargl, Stenslie, O'Leary, and their tippees received approximately $38,073.75 in realized and
  • Kargl, Stenslie and O'Leary have consented, without admitting or denying the allegations in
  • In addition, the Final Judgment will require Kargl, Stenslie and O'Leary to pay disgorgement,
  • The Commission's investigation into the trading of Sullivan Dental stock in the days
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