SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17820 / October 31, 2002
, United States District Court for the Northern District of
California, Civil Action No. C01-4984 MJJ
DOUGLAS M. GLOFF PAYS OVER $290,000 IN DISGORGEMENT, INTEREST AND
PENALTIES TO SETTLE INSIDER TRADING CHARGES
The Securities and Exchange Commission announced today that Judge
Martin J. Jenkins of the United States District Court for the Northern
District of California has entered a Final Judgment against Douglas M.
Gloff, of San Diego, California, in a Commission action that charged
him with insider trading in the securities of Acuson Corporation.
Without admitting or denying the allegations in the Commission's
complaint, Gloff consented to the judgment which permanently enjoins
him from violating Section 14(e) of the Securities Exchange Act of
1934 and Rule 14e-3 thereunder, and orders him to pay $137,485.91 in
disgorgement, prejudgment interest of $17,355.08, and a civil penalty
of $137,485.91.
The Commission's complaint in this matter, filed on December 19, 2001,
alleged that Gloff engaged in unlawful insider trading prior to the
public announcement on September 27, 2000 that Siemens Medical
Engineering Group was making a tender offer for Acuson. The Commission
alleged that, prior to the public announcement, Gloff learned from an
Acuson director that Acuson was going to be acquired. According to the
complaint, Gloff, while in possession of this material, non-public
information, purchased 200 Acuson call options on September 21, 2000
and then sold all 200 calls immediately following the public
announcement, realizing illegal profits of $137,485.91. The complaint
further alleged that on October 3, 2000, after being contacted by the
Commission staff, Gloff met with the Acuson director and suggested
that the director deny that he knew Gloff if he was asked that
question. (Litigation Release No. 17282, December 19, 2001.)
Simultaneously with the filing of the Commission's complaint, the U.S.
Attorney's Office for the Northern District of California filed
related criminal charges against Gloff. Gloff has entered a guilty
plea in connection with those charges, and is scheduled to be
sentenced on November 21, 2002.
The Commission would like to thank the New York Stock Exchange, the
Pacific Stock Exchange, the U.S. Attorney's Office for the Northern
District of California and the Federal Bureau of Investigation for
their cooperation in this investigation.
SNIPPETS:
Litigation Release No. 17820 / October 31,
DOUGLAS M. GLOFF PAYS OVER $290,000 IN DISGORGEMENT, INTEREST AND PENALTIES TO SETTLE INSIDER
The Securities and Exchange Commission announced today that Judge Martin J. Jenkins of the
Without admitting or denying the allegations in the Commission's complaint, Gloff consented
The Commission's complaint in this matter, filed on December 19, 2001, alleged that Gloff
The complaint further alleged that on October 3, 2000, after being contacted by the
Simultaneously with the filing of the Commission's complaint, the U.S. Attorney's Office for
Gloff has entered a guilty plea in connection with those charges, and is scheduled to be
The Commission would like to thank the New York Stock Exchange, the Pacific Stock Exchange,
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