SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 14827 / February 27, 1996
Securities and Exchange Commission v. Jeffrey C. Morris, Gerard
Murphy, Susan F. Keary and Graeme Davies (Civil Action No. 94
Civ. 8518) (CBM) (S.D.N.Y.)
The Commission announced today the entry of a final judgment
by default against Graeme Davies, the last remaining defendant in
the Commission's insider trading case involving securities in
Hilton Hotels Corporation. The final judgment enjoins Davies
from violating Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 thereunder and orders him to pay a civil
penalty in the amount of $425,625.00. In its amended complaint
filed in October 1995, the Commission alleged that Susan F.
Keary, the secretary to an outside director of Hilton, and her
boyfriend, Davies, provided material non-public information
relating to Hilton's consideration of "strategic alternatives to
enhance shareholder value" to defendants Jeffrey C. Morris and
Gerard Murphy, who in turn purchased Hilton call options and
common stock. Morris and Murphy, both of whom are British
nationals and were previously named in the case, sold their
Hilton securities at a profit of approximately $425,000 almost
immediately after Hilton announced this information on November
17, 1994. The Commission alleged that Keary learned the
information in the course of her employment. In the days
immediately preceding the trades, Keary traveled to Liverpool,
England to visit Davies. During or around the time of that trip,
she and/or Davies communicated material non-public information to
the other defendants.
In October 1995, simultaneously with the filing of the
amended complaint, Keary, without admitting or denying the
allegations of the complaint against her, consented to the entry
of a consent judgment enjoining her from violating Section 10(b)
of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
In addition, the Court ordered Keary to pay a civil penalty of
$10,000.00. Also in October 1995, defendant Morris, without
admitting or denying the allegations in the Commission's first
amended complaint, consented to the entry of a consent judgment
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
The Commission announced today the entry of a final judgment by default against Graeme
The final judgment enjoins Davies from violating Section 10of the Securities Exchange Act of
In its amended complaint filed in October 1995, the Commission alleged that Susan F. Keary,
Morris and Murphy, both of whom are British nationals and were previously named in the case,
During or around the time of that trip, she and/or Davies communicated material non-public
In October 1995, simultaneously with the filing of the amended complaint, Keary, without
In addition, the Court ordered Keary to pay a civil penalty of $10,000.00.
Pursuant to the judgment, the Court also ordered Morris to disgorge $105,762.21, which
This case commenced on November 23, 1994, when the Commission sought and obtained a temporary
The Commission gratefully acknowledges the assistance provided in this matter by Her
|
