SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17374 / February 22, 2002
01 Civ. 3999 (RWS) (S.D.N.Y.)
The Securities and Exchange Commission today announced several
developments in this insider trading litigation.
First, on February 6, 2002, Judge Robert W. Sweet of the U.S. District
Court for the Southern District of New York entered final judgments
against Ignacio Guerrero Pesqueira and his offshore trust, defendant
Banrise Ltd. BVI. The Commission's amended complaint adds Guerrero as
a defendant and alleges, in pertinent part, that Guerrero and Banrise
traded illegally in the stocks of CompUSA, Inc., and Prodigy
Communications. It further alleges that Guerrero, a former Executive
Director of Bital, the fourth largest bank in Mexico, is a close
friend of the tipper, defendant Alejandro Duclaud. The final judgments
permanently enjoin Guerrero and Banrise from violating Sections 10(b)
and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and
14e-3 thereunder, and order them to pay, jointly and severally,
$1,550,000 in disgorgement and prejudgment interest. Guerrero and
Banrise consented to the entry of the final judgments without
admitting or denying the allegations in the Commission's complaint.
Second, in a decision dated February 8, 2002, Judge Sweet granted the
Commission's motion to amend its complaint to add allegations related
to securities violations arising out of the Prodigy transactions
against Guerrero and existing defendants Banrise, Alejandro Duclaud,
A. Duclaud's offshore Anushka Trust, Rodrigo Igartua, and Igartua's
offshore Antares Trust. In addition, the court granted the defendants'
motions for summary judgment dismissing the Commission's allegations
related to securities violations arising out of the CompUSA
transactions. The Commission is reviewing this portion of the decision
to determine whether it will appeal.
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Modified 02/22/2002
SNIPPETS:
The Securities and Exchange Commission today announced several developments in this insider
First, on February 6, 2002, Judge Robert W. Sweet of the U.S. District Court for the Southern
The Commission's amended complaint adds Guerrero as a defendant and alleges, in pertinent
It further alleges that Guerrero, a former Executive Director of Bital, the fourth largest
The final judgments permanently enjoin Guerrero and Banrise from violating Sections 10and
Guerrero and Banrise consented to the entry of the final judgments without admitting or
Second, in a decision dated February 8, 2002, Judge Sweet granted the Commission's motion to
the court granted the defendants' motions for summary judgment dismissing the Commission's
The Commission is reviewing this portion of the decision to determine whether it will appeal.
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