U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17213 / October 31, 2001
Securities and Exchange Commission v. William A. Rothrock, IV et al.,
Civil Action No. H013732 (MH) (S.D. Tex.)
FORMER SENIOR VICE PRESIDENT AT USA WASTE SERVICES, INC. AND NINE
OTHERS SETTLE INSIDER TRADING CHARGES BY AGREEING TO BE ENJOINED AND
TO PAY MORE THAN $2.5 MILLION IN DISGORGEMENTS, INTEREST AND PENALTIES
The Securities and Exchange Commission today filed a complaint in the
United States District Court for the Southern District of Texas
(Houston Division) alleging that (1) ten individuals --William A
Rothrock, IV, W. Gregory Orr, Logan L. Nichols, Glenn A. Oakes,
Clarence L. Miller, Stephen P. Gauthier, Richard M. Miller, Darrell L.
Goodreau, Matthew E. Miller, and Timothy D. Trahan -- engaged in
unlawful insider trading and/or tipping in advance of the announcement
of USA Waste's acquisition of American Waste Services, Inc. in
February, 1998, and (2), five weeks later, Rothrock and seven of the
individuals engaged in illegal insider trading and/or tipping in
advance of the announcement of USA Waste's merger with Waste
Management, Inc. in March, 1998.
The Complaint alleges that Rothrock learned of USA Waste's plan to
acquire American Waste in his capacity as Senior Vice President of
Business Development at USA Waste and breached his duty by tipping
Orr, Nichols and Oakes in advance of the public announcement of the
acquisition on February 6, 1998. Based on these tips, Orr, Nichols and
Oakes each purchased American Waste stock. Shortly thereafter, Nichols
tipped his friends Clarence L. Miller, Stephen Gauthier, Richard M.
Miller and Robert "Dale" Trahan ("Dale Trahan") (now deceased), each
of whom also purchased American Waste stock. Richard Miller then
tipped his son, Matthew E. Miller and his friend Goodreau, both of
whom traded. Dale Trahan tipped his son Timothy D. Trahan, who also
traded. Between February 5 and 6, the trader defendants and Dale
Trahan purchased, in the aggregate, 322,500 shares of American Waste
stock, which they later sold for combined profits of $567,634.75.
The Complaint further alleges that five weeks later, Rothrock learned
of USA Waste's plan to merge with Waste Management in his official
capacity and breached his duty by tipping Nichols and Orr in advance
of the public announcement of the merger on March 11, 1998. Nichols
and Orr purchased Waste Management stock based on these tips. Nichols
also tipped Clarence Miller, Richard Miller and Dale Trahan as well as
certain non-defendant relatives. Each of those individuals traded.
Dale Trahan tipped Timothy Trahan, who traded, and Richard M. Miller
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. William A. Rothrock, IV et al., Civil Action No.
FORMER SENIOR VICE PRESIDENT AT USA WASTE SERVICES,
AND NINE OTHERS SETTLE INSIDER TRADING CHARGES BY AGREEING TO BE ENJOINED AND TO PAY MORE
The Complaint alleges that Rothrock learned of USA Waste's plan to acquire American Waste in
Based on these tips, Orr, Nichols and Oakes each purchased American Waste stock.
Shortly thereafter, Nichols tipped his friends Clarence L. Miller, Stephen Gauthier, Richard
Richard Miller then tipped his son, Matthew E. Miller and his friend Goodreau, both of whom
Dale Trahan tipped his son Timothy D. Trahan,
Between February 5 and 6, the trader defendants and Dale Trahan purchased, in the aggregate,
The Complaint further alleges that five weeks later, Rothrock learned of USA Waste's plan to
Richard Miller and Dale Trahan as well as certain non-defendant relatives.
Richard Miller also recommended that a non-defendant relative purchase Waste Management stock
|
