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SEC v GEORGE P. MATUS and PETER T. MATUS Click to find out why . . .



Keywords & Phrases
CaseNo: LR-17592, CourtCode: DIS, CourtName: COURT FOR THE EASTERN DISTRICT OF TEXAS ENTERED A FINAL JUDGMENT, Defendant: George P. Matus and Peter T. Matus, Plaintiff: SEC, State: TX Texas, UniqueCaseRef: SEC>LR-17592, Matus, George, Peter Matus, Carreker, News, Securities, Commission, District, Texas, Insider Trading, Negative News, Brothers, United States, Exchange Commission, Maximum Civil, Permanently Enjoining, Disgorgement, Trading Sanctions Act, Illegal Trades, Carreker Stock, Non-public Information, Profit, Price, Decline, Insider Trading Sanctions, Resident, Confidentiality, Complaint , ContentID: 120253072

Case Documents
1 2002-06-27 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 128903
2 pages
HTML
Total Documents: 1 document , 2 pages
Price: $ 19.95


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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
GEORGE
PETER MATUS
COURT
CARREKER
NEWS
SECURITIES
COMMISSION
DISTRICT
TEXAS
INSIDER TRADING
NEGATIVE NEWS
BROTHERS
UNITED STATES
EXCHANGE COMMISSION
MAXIMUM CIVIL
PERMANENTLY ENJOINING
DISGORGEMENT
TRADING SANCTIONS ACT
DEFENDANTS
ILLEGAL TRADES
CARREKER STOCK
NON-PUBLIC INFORMATION
PROFIT
PRICE
DECLINE
INSIDER TRADING SANCTIONS
RESIDENT
CONFIDENTIALITY
COMPLAINT
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
SNIPPETS:
  • 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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