UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15769 \ June 5, 1998
Securities and Exchange Commission v. Brent Gale, Lucy Gale, Hal
Skinner,
and Margarita Skinner, 98 CV 137 (D. Wy.)
The Commission today filed an insider trading action against Brent
Gale, a
resident of Cheyenne, Wyoming and a vice president of an EchoStar
Communications Corp. (EchoStar) subsidiary, EchoStar Satellite
Corporation.
The complaint, filed in the United States District Court for the
District
of Wyoming, alleges that on February 21 and February 24, 1997, Gale
purchased a total of 1250 shares of EchoStar stock at an average price
of
$15.77 after learning of a confidential alliance between News
Corporation
and EchoStar by virtue of his position. The complaint alleges that
after
the public announcement of the alliance, Gale sold the 1250 shares for
$22.00 per share for illegal profits of $7,782.50. The complaint also
alleges that Gale informed his wife, Lucy Gale, of the alliance and
that
she in turn tipped her sister and brother-in-law, Margarita and Hal
Skinner, who borrowed funds to purchase EchoStar stock and realized
unlawful profits of $5,550.00.
Brent and Lucy Gale and Hal and Margarita Skinner have agreed to
consent, without admitting or denying the substantive
allegations in the complaint, to the entry of an order enjoining
each of them from future violations of Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Brent
Gale agreed to disgorge $7,782.50, plus prejudgment
interest, and to pay a civil monetary penalty of $7,782.50. Lucy
Gale agreed to pay a civil monetary penalty of $5,550.00.
With respect to Hal and Margarita Skinner, disgorgement was waived
and imposition of civil penalties was not sought in light
of their inability to pay.
SNIPPETS:
Securities and Exchange Commission v. Brent Gale, Lucy Gale, Hal Skinner, and Margarita
The Commission today filed an insider trading action against Brent Gale, a resident of
The complaint, filed in the United States District Court for the District of Wyoming, alleges
The complaint alleges that after the public announcement of the alliance, Gale sold the 1250
The complaint also alleges that Gale informed his wife, Lucy Gale, of the alliance and that
Brent and Lucy Gale and Hal and Margarita Skinner have agreed to consent, without admitting
Brent Gale agreed to disgorge $7,782.50, plus prejudgment interest, and to pay a civil
Lucy Gale agreed to pay a civil monetary penalty of $5,550.00.
With respect to Hal and Margarita Skinner, disgorgement was waived and imposition of civil
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