UNITED STATES SECURITIES EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15779 / June 11, 1998
SECURITIES AND EXCHANGE COMMISSION v. CRAIG RYAN SPRADLING,
98 Civ. 4117 (MBM) (S.D.N.Y.)
The Commission announced today that it filed a civil complaint charging
a 25 year old
associate of a prominent law firm with insider trading. Specifically,
the Complaint
alleges that the associate defrauded his employer and one of its
clients by buying
options to purchase common stock of a company that was the target of a
planned tender
offer by that client.
Named in the Commission s Complaint is:
CRAIG RYAN SPRADLING, an attorney currently associated with the law
firm Cleary,
Gottlieb, Steen & Hamilton (Cleary ) in its London office. At the time
of the
transactions and events alleged in the Complaint, CRAIG RYAN SPRADLING
worked in
Cleary's New York Office.
The Complaint alleges that CRAIG RYAN SPRADLING made illegal profits of
approximately
$49,000 by purchasing Loctite Corp. ( Loctite ) call options on October
24, 1996.
According to the Complaint, Henkel KGaA ( Henkel ) announced on Monday,
October 28, 1996,
that it intended to acquire the outstanding shares of Loctite at $56
per share
( Announcement ). Prior to the announcement of that tender offer,
Clearly allegedly
acted as counsel to Henkel.
CRAIG RYAN SPRADLING allegedly purchased, on October 24, 1996, 65
December Loctite $50
call options for approximately $6,000 through a securities brokerage
account he maintained
with Charles Schwab & Co., Inc. ( Schwab ), a registered broker-dealer.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. CRAIG RYAN SPRADLING,
The Commission announced today that it filed a civil complaint charging a 25 year old
the Complaint alleges that the associate defrauded his employer and one of its clients by
CRAIG RYAN SPRADLING, an attorney currently associated with the law firm Cleary, Gottlieb,
The Complaint alleges that CRAIG RYAN SPRADLING made illegal profits of approximately $49,000
According to the Complaint, Henkel KGaA announced on Monday, October 28, 1996, that it
CRAIG RYAN SPRADLING allegedly purchased, on October 24, 1996, 65 December Loctite $50 call
According to the Complaint, CRAIG RYAN SPRADLING submitted to Schwab on October 23, 1996, the
In the weeks prior to the announcement, CRAIG RYAN SPRADLING, while an associate at Cleary,
The Commission seeks a final judgment: permanently enjoining
from violating the general antifraud and tender offer antifraud provisions of the Securities
The litigation is pending.
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