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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14738 / November 28, 1995
SECURITIES AND EXCHANGE COMMISSION v. GARY HOWARD FELSHER, IHOR
G. KUPCHYNSKY, KIM BUBOLO, RICHARD D. ZIPES, JAMES A. WEIL,
RONALD A. LEICHTNER, GEORGE KUPCHYNSKY, ROMAN KUPCHYNSKY, JASON
COHEN, AND JON TURNQUIST, 94 Civ. 4150 (LLS)
NEW YORK -- The Commission announced today that the Honorable
Louis L. Stanton of the United States District Court for the
Southern District of New York entered final judgments on consent
against defendants Gary Howard Felsher, Richard D. Zipes, James
A. Weil, Ronald A. Leichtner and Jason Cohen permanently
enjoining each of them from future violations of Sections 10(b)
and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5
and 14e-3 thereunder. Also, the Court entered a final judgment
on consent against defendant Jon Turnquist permanently enjoining
him from future violations of Section 14(e) of the Securities
Exchange Act of 1934 and Rule 14e-3. The final judgments order a
total of $941,825.11 in disgorgement plus prejudgment interest,
and a total of $266,035.45 in civil penalties under the Insider
Trading and Securities Fraud Enforcement Act of 1988. These
defendants each consented to the entry of the final judgment
against him without admitting or denying the allegations in the
Complaint, as amended.
Any disgorgement and prejudgment interest paid by defendants
is being held by the Court for the benefit of persons who submit
valid claims arising under the federal securities laws by reason
of the conduct alleged against these defendants in the Complaint,
as amended. Such claims must be submitted within one year after
the date of entry of each final judgment. The Commission intends
to petition the Court to appoint a special claims master to
develop a distribution plan.
In this action, the Commission alleged that, on or before
June 6, 1989, defendant Ihor G. Kupchynsky ("Kupchynsky") learned
of a planned tender offer for Colorado Prime Corp. ("Colorado
Prime") and communicated that information to defendants Bubolo,
Felsher and Turnquist. Defendants Kupchynsky, Bubolo, Felsher
and Turnquist then purchased Colorado Prime securities on June 6
and 7, 1989, while in possession of this information. The
Commission also alleged that, on or about October 30, 1989,
defendant Zipes misappropriated material, nonpublic information
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. GARY HOWARD FELSHER,
NEW YORK -- The Commission announced today that the Honorable Louis L. Stanton of the United
the Court entered a final judgment on consent against defendant Jon Turnquist permanently
The final judgments order a total of $941,825.11 in disgorgement plus prejudgment interest,
These defendants each consented to the entry of the final judgment against him without
In this action, the Commission alleged that, on or before June 6, 1989, defendant Ihor G.
Defendants Kupchynsky, Bubolo, Felsher and Turnquist then purchased Colorado Prime securities
The Commission also alleged that, on or about October 30, 1989, defendant Zipes
Defendant Zipes allegedly tipped defendants Kupchynsky, Leichtner, Felsher, Weil and/or
The litigation is pending as to the remaining defendants.
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