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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14823 / February 23, 1996
SECURITIES AND EXCHANGE COMMISSION v. STEFAN HISLOP and ERIK
HYLANDER, 95 Civ. 4578 (S.D.N.Y. (JES))
The Commission announced that, on February 6, 1996, Judge John E.
Sprizzo of the United States District Court for the Southern
District of New York issued a default judgment against two
Swedish citizens, Stefan Hislop and Erik Hylander, who were
charged with insider trading in the securities of Sea Containers,
Ltd., ("Sea Containers"), a Bermuda-based shipping company.
Under the default judgment, Judge Sprizzo permanently enjoined
Hislop and Hylander from future violations of Sections 10(b) and
14(e) and Rules 10b-5 and 14e-3 of the Securities Exchange Act of
1934, and ordered them to disgorge, jointly and severally,
$924,087.93 in illegal trading profits plus prejudgment interest
of $748,220.45 thereon. The Commission in its Complaint alleged
that Hislop, who was employed in the financial division of Stena
Finans AB ("Stena"), a privately-owned shipping company based in
Sweden, communicated material, nonpublic information about
Stena's proposed tender offer for Sea Containers to Hylander, an
employee of Stena's bank, Handelsbanken, just prior to the public
announcement of the tender offer on May 26, 1989. The Commission
further alleged that Hislop and Hylander, while in possession of
this information, agreed to purchase Sea Containers call options
prior to the public announcement. To conceal Hislop's
involvement in the transactions, Hislop and Hylander agreed that
Hylander would make the purchases of Sea Containers securities.
Hislop and Hylander then shared $924,087.93 in profits from these
options transactions.
The Commission notes with gratitude the substantial cooperation
provided by the Swedish Financial Supervisory Authority,
Finansinspektionen, and other Swedish authorities, in obtaining
this judgment against Hislop and Hylander. As a result of that
cooperation, Hislop and Hylander were convicted of tax evasion in
Sweden for failure to report their Sea Containers trading profits
to Swedish tax authorities.
The Commission also expresses its gratitude to the New York Stock
Exchange and the Chicago Board Options Exchange for their
assistance in the investigation of this matter. For additional
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. STEFAN HISLOP and ERIK HYLANDER,
District of New York issued a default judgment against two Swedish citizens, Stefan Hislop
Under the default judgment, Judge Sprizzo permanently enjoined Hislop and Hylander from
The Commission in its Complaint alleged that Hislop, who was employed in the financial
The Commission further alleged that Hislop and Hylander, while in possession of this
To conceal Hislop's involvement in the transactions, Hislop and Hylander agreed that Hylander
The Commission notes with gratitude the substantial cooperation provided by the Swedish
As a result of that cooperation, Hislop and Hylander were convicted of tax evasion in Sweden
The Commission also expresses its gratitude to the New York Stock Exchange and the Chicago
see Litigation Release No. 14533.
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