U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17203 / October 24, 2001
Securities and Exchange Commission v. Hahn Truong, Hieu Truong, Hen
Truong, Nina Vinh, Mike Pirbazari and Christopher Nguyen, Civil Action
No. C-98-21137 SW (N.D. Cal.)
The Securities and Exchange Commission ("Commission") announced that
it has settled its pending insider trading action against the two
remaining defendants, Hen Truong ("Hen") and Hanh Truong ("Hanh"). Hen
and Hanh, who are brothers, were charged with insider trading in the
securities of Molecular Dynamics, Inc. ("Molecular"), a Northern
California-based company.
On October 9, 2001, U.S. District Judge William A. Ingram of the U.S.
District Court for the Northern District of California entered a final
judgment of permanent injunction and other relief against Hen. The
judgment permanently enjoins Hen from future violations of the
antifraud provisions of Section 17(a) of the Securities Act of 1933
("Securities Act"), Section 10(b) of the Securities Exchange Act of
1934 ("Exchange Act") and Rule 10b-5. The final judgment also orders
Hen to disgorge $66,250 in ill-gotten gains from his short selling of
15,000 shares of Molecular stock on March 23 and 24, 1994, plus
prejudgment and postjudgment interest totaling $26,562, and a civil
penalty of $66,250. The Commission's complaint alleged that the short
sales took place in Hen's newly-opened account at McLaughlin Capital
("McLaughlin"). The complaint further alleged that these sales were
based upon material non-public information that Hanh tipped to Hen
regarding Molecular's weak earnings and were financed by Hanh pursuant
to a profit-sharing arrangement with Hen.
Previously, on August 6, 2001, the Court entered a final judgment
against Hanh, permanently enjoining him from future violations of
Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act
and Rule 10b-5. Hanh was ordered to disgorge $66,250, but disgorgement
was waived and a civil penalty was not assessed against him based upon
his demonstrated inability to pay.
The Commission's complaint, filed on November 16, 1998, alleged that
in March 1994, Hahn used confidential corporate information in selling
shares in his then-employer, Molecular, and tipped, among others, Hen,
who then sold all of his Molecular shares and sold short additional
Molecular shares from March 17 through March 24, 1994. On April 12,
2000, the Court granted partial summary judgment in favor of Hanh and
Hen with respect to any Molecular trading that occurred before March
22, 1994. The Court also granted summary judgment in favor of
co-defendants Hieu Truong and Christopher Nguyen. However, the Court
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. Hahn Truong, Hieu Truong, Hen Truong, Nina Vinh, Mike
The Securities and Exchange Commission announced that it has settled its pending insider
Hen and Hanh, who are brothers, were charged with insider trading in the securities of
On October 9, 2001, U.S. District Judge William A. Ingram of the U.S. District Court for the
The judgment permanently enjoins Hen from future violations of the antifraud provisions of
The final judgment also orders Hen to disgorge $66,250 in ill-gotten gains from his short
The complaint further alleged that these sales were based upon material non-public
Previously, on August 6, 2001, the Court entered a final judgment against Hanh, permanently
Hanh was ordered to disgorge $66,250, but disgorgement was waived and a civil penalty was not
The Commission's complaint, filed on November 16, 1998, alleged that in March 1994, Hahn used
On April 12, 2000, the Court granted partial summary judgment in favor of Hanh and Hen with
The Court also granted summary judgment in favor of co-defendants Hieu Truong and Christopher
However, the Court denied summary judgment with respect to Hen's short sale of 15,000
Previously, the Commission obtained judgments against defendants Nina Vinh, Hieu Truong's
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