UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15390 / June 20, 1997
SECURITIES AND EXCHANGE COMMISSION v. EDWARD R. DOWNE, JR., STEVEN A.
GREENBERG, MARTIN REVSON, DAVID SALAMONE, FRED R. SULLIVAN, THOMAS
WARDE,
MILTON WEINGER, and BROADSWORD, LTD. 92 Civ. 4092 (S.D.N.Y.) (SAS).
The Securities and Exchange Commission ("Commission") announced
today
that United States District Judge Shira A. Scheindlin has ordered
defendant
Thomas Warde ("Warde") to pay $3,007,951 in disgorgement, prejudgment
interest, and civil penalties based on a jury verdict rendered on
January
30, 1997 that Warde violated the federal laws against insider trading.
During June and July 1987, Warde purchased securities issued by Kidde,
Inc.
("Kidde") after receiving nonpublic information concerning the
possible
sale of Kidde from then-Kidde director Edward R. Downe, Jr. ("Downe").
In
her opinion and order dated June 17, 1997, Judge Scheindlin also issued
a
permanent injunction prohibiting Warde from engaging in further
violations
of certain provisions of the federal securities laws. Finally, Judge
Scheindlin denied Warde's motion to set aside the jury verdict.
Judge Scheindlin held that Warde should disgorge $871,725 in
profits
that he received in connection with his illicit trading in Kidde
securities, pay pre-judgment interest of $1,264,501 based upon
interest
rates utilized by the IRS for underpayment of taxes, and pay a civil
penalty of $871,725. Judge Scheindlin issued the permanent
injunction
because there was a reasonable likelihood of future violations in the
absence of a permanent injunction.
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission announced today that United States District Judge
During June and July 1987, Warde purchased securities issued by Kidde, Inc. after receiving
permanent injunction prohibiting Warde from engaging in further violations of certain
Judge Scheindlin denied Warde's motion to set aside the jury verdict.
Judge Scheindlin issued the permanent injunction because there was a reasonable likelihood of
In denying Warde's motion to set aside the jury's verdict, Judge Scheindlin found that the
Judge Scheindlin held that, based on the Commission's circumstantial evidence, the jury was
The Final Judgment of Permanent Injunction and Other Relief Against
Defendant Thomas Warde will be entered in the United States District Court for the Southern
As noted above, that judgment prohibits Warde from future violations of Sections 10and 14of
The Commission announced the jury verdict against Warde in Litigation Release No. 15245,
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