UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17592 / June 27, 2001
SECURITIES AND EXCHANGE COMMISSION V. GEORGE P. MATUS AND PETER T.
MATUS, CIVIL ACTION NO. 4 01CV359-PB, (USDC/Eastern District of Texas)
The Commission announces that on June 24, 2002, the federal district
court for the Eastern District of Texas entered a final judgment
against George and Peter Matus permanently enjoining each from future
violations of the federal securities laws, barring George Matus from
serving as an officer or director, ordering disgorgement and imposing
the maximum civil monetary penalties available under the Insider
Trading Sanctions Act. The Commission instituted suit against the two
brothers on December 4, 2001, alleging that they had engaged in
insider trading.
The defendants are
* George P Matus, age 33, a resident of Allen, Texas, at the time of
the illegal trades was Senior Vice President of Investor Relations
at Carreker Corporation, a Dallas, Texas, based company traded on
the Nasdaq stock market.
* Peter T. Matus, age 27, a resident of Temecula, California and
brother of George Matus. Peter Matus, at the time of the illegal
trades, was a registered representative with a brokerage firm.
The case was filed in the United States District Court for the Eastern
District of Texas, Sherman Division, and was assigned to United States
Magistrate Judge Robert Faulkner.
Specifically, the SEC alleged that George Matus had advance knowledge
of Carreker's negative earnings news and participated in both the
drafting of the press release announcing the negative news and the
decision as to when to release the news. However, rather than maintain
the confidentiality of the news and abstain from trading in Carreker
stock, George Matus conveyed the confidential negative information to
his brother and transferred $50,000 to him in order to trade in
Carreker securities and profit from the non-public information.
Pursuant to their plan, Peter Matus then used his brother's funds to
purchase 750 Carreker put options, effectively betting that the price
of Carreker shares would decline once the negative news was made
public. Predictably, upon release of the negative news, the price of
Carreker stock declined. When Peter Matus sold the options a week
later, the price had declined more than 40%, netting the brothers a
profit of $209,940.
Without admitting or denying the allegations in the Commission's
Complaint, the defendants consented to a permanent injunction and an
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION V. GEORGE P. MATUS AND PETER T. MATUS, CIVIL ACTION NO. 4
The Commission announces that on June 24, 2002, the federal district court for the Eastern
The defendants are * George P Matus, age 33, a resident of Allen, Texas, at the time of the
Peter Matus, at the time of the illegal trades, was a registered representative with a
The case was filed in the United States District Court for the Eastern District of Texas,
the SEC alleged that George Matus had advance knowledge of Carreker's negative earnings news
However, rather than maintain the confidentiality of the news and abstain from trading in
Pursuant to their plan, Peter Matus then used his brother's funds to purchase 750 Carreker
When Peter Matus sold the options a week later, the price had declined more than 40%, netting
Without admitting or denying the allegations in the Commission's Complaint, the defendants
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