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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION CLARIFY DISTRICT ACQUISITION SECURITIES EXCHANGE COMMISSION SAN FRANCISCO GEORGE UNITED STATES DISTRICT STATES DISTRICT COURT NORTHERN DISTRICT CALIFORNIA CIVIL INSIDER TRADING NORTEL NETWORKS SPOUSE FRANCISCO PUBLIC RELATIONS CLARIFY STOCK PROHIBITING FUTURE VIOLATIONS SECURITIES EXCHANGE ACT THEREUNDER DISGORGEMENT PROFITS PREJUDGMENT CIVIL PENALTY ASSISTANCE NASD REGULATION MATTER |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17161 / September 28, 2001
SEC V. GEORGE F. BRANDT, United States District Court for the Northern
District of California Civil Action No. C 01-02518 (JL)
SEC CHARGES INSIDER TRADING IN ACQUISITION OF CLARIFY, INC. BY NORTEL
NETWORKS
On July 2, 2001, the Securities and Exchange Commission ("Commission")
filed an insider trading case alleging that the spouse of a San
Francisco public relations executive obtained nonpublic information
about the acquisition of Clarify, Inc. by Nortel Networks Corporation.
The Commission alleged that George F. Brandt of San Francisco used the
information he had gotten from his wife to buy Clarify stock before
the information became public.
In the complaint, filed in the United States District Court for the
Northern District of California, the Commission alleged that Brandt's
spouse was an executive of a San Francisco public relations agency
specializing in the representation of high technology companies.
Clarify had asked her firm to assist in coordinating media contacts in
preparation for the acquisition announcement. She told Brandt about
the acquisition in confidence and Brandt used the confidential
information to buy Clarify stock.
Without admitting or denying the Commission's allegations, Brandt
consented to a permanent injunction prohibiting future violations of
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder. Brandt also agreed to pay a total of $29,419.41, including
$14,246.26 in disgorgement of profits, prejudgment interest of
$926.89, and a civil penalty of $14,246.26.
The Commission acknowledges the assistance of NASD Regulation, Inc.,
in this matter.
_________________________________________________________________
Modified 09/29/2001
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