SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17125 / September 10, 2001
SECURITIES AND EXCHANGE COMMISSION v. PATRICK JOSEPH DANAHER, JOHN
THOMAS DOHERTY, ROBERT PAUL WITTMAN, and TIMOTHY FREDRICK WARD, Civil
Action No. 01 CV 8431 (TPG)(S.D.N.Y.) (filed September 10, 2001)
SEC SUES FOUR PERSONS FOR INSIDER TRADING PRIOR TO THE WILLIAMS
COMPANIES' ACQUISITION OF MAPCO
On September 10, 2001, the Securities and Exchange Commission filed a
civil injunctive action in the United States District Court for the
Southern District of New York alleging that Patrick Danaher, John
Doherty, Robert Wittman, and Timothy Ward engaged in illegal insider
trading prior to the November 24, 1997 public announcement that Mapco
Incorporated would be acquired by The Williams Companies in a deal
worth approximately $3.46 billion. The Commission's complaint alleges
that Patrick Danaher, a Mapco employee, learned of the impending
acquisition and then tipped a friend who, in turn, tipped others. In a
separate complaint also filed on September 10, 2001, the Commission
alleged that four other persons also engaged in other insider trading
schemes. SEC v. Harry Parker Daily, et al., Civil Action No. 01 CV
8432 (TPG)(S.D.N.Y.); Litigation Release No. 17124 (filed September
10, 2001). All told, the insider trading schemes set forth in the two
complaints resulted in the investment of over $325,000 in Mapco
securities and profits of $134,208.50.
The Commission's complaint in this action specifically alleges that,
during the week before the public announcement, Patrick Danaher, a
general manager of supply and trading at Mapco's Houston subsidiary,
tipped a childhood friend, John Doherty. The complaint alleges that
Danaher told Doherty that Mapco was going to be acquired, that each
Mapco share would be valued at approximately $46 per share in the
acquisition, and that an announcement would be made soon. Based on
this information, Doherty purchased Mapco call options four days
before the announcement and made illegal profits of $20,375.
In addition to his own trading, Doherty also tipped a number of other
people, including Timothy Ward and Robert Wittman, both of whom worked
with Doherty as oil futures brokers in New York City. Ward and
Wittman, who was also a registered securities professional, purchased
Mapco securities based on Doherty's tip, profiting by $15,506.25 and
$10,062.50, respectively.
Without admitting or denying the allegations in the Commission's
complaint, three of the four defendants (Danaher, Wittman and Ward)
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. PATRICK JOSEPH DANAHER, JOHN THOMAS DOHERTY, ROBERT
SEC SUES FOUR PERSONS FOR INSIDER TRADING PRIOR TO THE WILLIAMS
COMPANIES' ACQUISITION OF MAPCO
On September 10, 2001, the Securities and Exchange Commission filed a civil injunctive action
The Commission's complaint alleges that Patrick Danaher, a Mapco employee, learned of the
In a separate complaint also filed on September 10, 2001, the Commission alleged that four
All told, the insider trading schemes set forth in the two complaints resulted in the
The Commission's complaint in this action specifically alleges that, during the week before
Based on this information, Doherty purchased Mapco call options four days before the
In addition to his own trading, Doherty also tipped a number of other people, including
Without admitting or denying the allegations in the Commission's complaint, three of the four
The settlements also call for the defendants to pay a total of $79,595.43 in disgorgement,
y Ward has consented to pay $35,914.42, representing disgorgement of his profits of $15,506.25,
The Commission's complaint against Doherty seeks, in addition to injunctive relief, an order
|
