U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17110 / August 29, 2001
SEC v. Brian E. Pridgeon, Stephon A. Carradine, and Craig L. Smith,
Case No. CV 00-9375 FMC (RZx) (C.D. Cal.).
United States v. Brian E. Pridgeon, Stephon A. Carradine, and Craig L.
Smith, Case No. CR 00-920(A) LGB (C.D. Cal.).
LONG BEACH MAN CONVICTED OF OBSTRUCTING SEC INVESTIGATION OF INSIDER
TRADING SCHEME
On August 27, 2001, a federal jury convicted Craig L. Smith, age 51,
of Long Beach, California, of obstructing an investigation by the
Securities and Exchange Commission into alleged insider trading. The
United States Attorney for the Central District of California
prosecuted the two week jury trial before United States District Judge
Lourdes G. Baird.
The evidence presented to the jury at trial showed that Smith had
participated in the purchase and sale of securities of Ancor
Communications, Inc. in December 1999. When the SEC attorney
investigating the transaction contacted Smith about the trades, Smith
falsely claimed that he had purchased the securities on his own based
on a tip he received from an unknown person. In fact, the transactions
had been executed by Brian E. Pridgeon, age 37, of San Jose,
California, who at the time was a marketing engineer at Intel
Corporation. Smith's business partner, Stephon A. Carradine, age 38,
of Long Beach, California, is Pridgeon's cousin. The evidence showed
that Pridgeon purchased the Ancor securities for Smith and Carradine
based on material, non-public information that he misappropriated from
his employer. Pridgeon also purchased Ancor securities in other
brokerage accounts in his name and those of other family members.
Pridgeon pled guilty in federal court to insider trading charges in
this case before the trial began. While the jury convicted Smith on
the obstruction of justice charge, the jury acquitted Smith and
Carradine on counts of conspiracy and securities fraud.
Pridgeon is scheduled to be sentenced on the securities fraud
conviction on December 10, 2001 before Judge Baird. Smith is scheduled
to be sentenced on the obstruction of justice conviction on November
5, 2001. The Securities and Exchange Commission's civil action against
all three defendants is pending in federal court. See Litigation
Release 16676, September 1, 2000.
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SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
United States v. Brian E. Pridgeon, Stephon A. Carradine, and Craig L. Smith, Case No. CR
LONG BEACH MAN CONVICTED OF OBSTRUCTING SEC INVESTIGATION OF INSIDER TRADING SCHEME
On August 27, 2001, a federal jury convicted Craig L. Smith, age 51, of Long Beach,
The United States Attorney for the Central District of California prosecuted the two week
The evidence presented to the jury at trial showed that Smith had participated in the
When the SEC attorney investigating the transaction contacted Smith about the trades, Smith
The evidence showed that Pridgeon purchased the Ancor securities for Smith and Carradine
Pridgeon pled guilty in federal court to insider trading charges in this case before the
While the jury convicted Smith on the obstruction of justice charge, the jury acquitted Smith
Pridgeon is scheduled to be sentenced on the securities fraud conviction on December 10, 2001
The Securities and Exchange Commission's civil action against all three defendants is pending
See Litigation Release 16676, September 1, 2000.
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