SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17124 / September 10, 2001
SECURITIES AND EXCHANGE COMMISSION v. HARRY PARKER DAILY, JAMES
FRANCIS HEALEY, PAUL MICHAEL HEALEY, and ROBERT GEORGE VAN HOECKE,
Civil Action No. 01 CV 8432 (TPG)(S.D.N.Y.)(filed September 10, 2001)
SEC SUES FOUR PERSONS, INCLUDING TWO FORMER MAPCO EMPLOYEES, FOR
INSIDER TRADING PRIOR TO THE WILLIAMS COMPANIES' ACQUISITION OF MAPCO,
INC. SETTLING DEFENDANTS PAY OVER $107,000 IN DISGORGEMENT AND
PENALTIES
On September 10, 2001, the Securities and Exchange Commission filed an
injunctive action in the United States District Court for the Southern
District of New York, alleging that Harry Daily, James Healey, Paul
Healey, and Robert Van Hoecke 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 describes
three insider trading schemes involving, among others, two former
Mapco employees. In a separate complaint also filed on September 10,
2001, the Commission alleged that four other persons also engaged in
insider trading. SEC v. Patrick Joseph Danaher, et al., Civil Action
No. 01 CV 8431 (TPG)(S.D.N.Y.); Litigation Release No. 17125 (filed
September 10, 2001). All told, the insider trading schemes described
in the Commission's 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
Harry Daily, then a vice-president of marketing at Mapco, learned of
the pending acquisition ten days prior to the public announcement.
Several days later, despite the fact that his supervisor expressly
forbade him to buy Mapco securities, Daily directed that the entire
unrestricted balance of his company profit-sharing and retirement plan
be invested in units of Mapco stock. Daily realized profits of
$11,985.15 as a result of his purchase.
In a second insider trading scheme, James Healey, a vice-president of
distribution and transportation in Mapco's Houston subsidiary, also
learned of the pending acquisition. The complaint alleges that even
after his supervisor confirmed that the information was confidential,
James Healey tipped his brother, Paul Healey, a Las Vegas-based CPA.
In response, Paul Healey opened a new brokerage account the next
morning and purchased 1,500 shares of Mapco stock. After the
announcement, Paul Healey realized a profit of $10,568.30. James
Healey also illegally tipped his aunt, prompting her to purchase 350
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. HARRY PARKER DAILY, JAMES FRANCIS HEALEY, PAUL MICHAEL
SEC SUES FOUR PERSONS, INCLUDING TWO FORMER MAPCO EMPLOYEES, FOR INSIDER TRADING PRIOR TO THE
On September 10, 2001, the Securities and Exchange Commission filed an injunctive action in
In a separate complaint also filed on September 10, 2001, the Commission alleged that four
All told, the insider trading schemes described in the Commission's two complaints resulted
The Commission's complaint in this action specifically alleges that Harry Daily, then a
In a second insider trading scheme, James Healey, a vice-president of distribution and
The complaint alleges that even after his supervisor confirmed that the information was
James Healey also illegally tipped his aunt, prompting her to purchase 350 Mapco shares,
The complaint also alleges a third insider trading scheme in which a consultant to Mapco,
Before returning to his home state, Van Hoecke called to open a new account and purchased
Without admitting or denying the allegations in the Commission's complaint, each of the
The settlements also call for the defendants to pay disgorgement, prejudgment interest and
fits, and a one-time civil penalty of $10,568.30 based on the profits of his brother; Paul Healey
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