SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 15736 / May 12, 1998
Securities and Exchange Commission v. Brad E. Hollinger, Civil Action
No.
98 CV 1187 (D.C.D.C.)
The Securities and Exchange Commission today filed an insider trading
action against Brad E. Hollinger, a former senior vice president of
Continental Medical Systems, Inc. (CMS). The complaint alleges as
follows:
In March 1995, through his position as an officer of CMS, Hollinger
obtained material, inside information concerning Horizon Healthcare
Corporation s imminent plans to acquire CMS. While in possession of
this
information, Hollinger directed and caused the purchase, on March 30,
1995,
of 5,000 shares of CMS common stock through a family member s
brokerage
accounts. The following day, CMS and Horizon publicly announced the
execution of a definitive merger agreement in which Horizon agreed to
acquire CMS. By engaging in the above conduct, Hollinger violated
Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated
thereunder.
Simultaneously with the commencement of this enforcement action,
Hollinger consented, without admitting or denying the allegations in
the
complaint, to the entry of a final judgment permanently enjoining him
from
violating Section 10(b) of the Exchange Act and Rule 10b-5. In
settlement,
Hollinger agreed to pay $49,719.76, representing disgorgement of the
trading profits of $21,625, prejudgment interest of $6,469.76, and a
civil
penalty of $21,625.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. Brad E. Hollinger, Civil Action No. 98 CV 1187
The Securities and Exchange Commission today filed an insider trading action against Brad E.
The complaint alleges as follows: In March 1995, through his position as an officer of CMS,
of 5,000 shares of CMS common stock through a family member s brokerage accounts.
CMS and Horizon publicly announced the execution of a definitive merger agreement in which
By engaging in the above conduct,
10of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Simultaneously with the commencement of this enforcement action, Hollinger consented, without
In settlement, Hollinger agreed to pay $49,719.76, representing disgorgement of the trading
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