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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