U.S. SECURITIES & EXCHANGE COMMISSION
Litigation Release No. 17785 / October 15, 2002
Federal Judge Permanently Enjoins John Patrick Fitzgerald
United States District Court for the Northern District of Georgia,
Civil Action No. 1 02-CV-489-JEC
The Securities and Exchange Commission announced today that the
Honorable Julie E. Carnes, United States District Judge for the
Northern District of Georgia, entered a Final Judgment of Permanent
Injunction as to Defendant John Patrick Fitzgerald ("Fitzgerald"),
restraining and enjoining him from further violations of Section 10(b)
of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Fitzgerald consented to the entry of the judgment without admitting or
denying any of the allegations of the Commission's complaint. The
Court ordered disgorgement against Fitzgerald in the amount of
$122,424, plus prejudgment interest thereon of $19,653. The Court also
imposed a civil penalty of $51,385 and declined to impose additional
penalties based upon Fitzgerald's sworn statement of financial
condition.
The Commission's complaint, filed on February 21, 2002, alleged
insider trading by Fitzgerald, CheckFree's vice president of financial
planning and analysis. The complaint alleged that on February 2, 2000,
an executive officer of CheckFree told Fitzgerald that CheckFree had
agreed to merge with TransPoint, a joint venture of Microsoft
Corporation, First Data Corporation, and Citibank, N.A. Between
February 9, 2000, and February 15, 2000, Fitzgerald purchased a total
of 5,857 shares of CheckFree stock on three separate days, including
the day of the merger announcement, at an average price of $64.54 per
share. On February 18, 2000, Fitzgerald sold 5,000 shares at an
average price of $82.085 per share. In less than two weeks, Fitzgerald
received a gain of $102,770.87 on an investment of $377,981.69.
See also (February 21, 2002)
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Modified 10/15/2002
SNIPPETS:
Federal Judge Permanently Enjoins John Patrick Fitzgerald
United States District Court for the Northern District of Georgia,
The Securities and Exchange Commission announced today that the Honorable Julie E. Carnes,
Fitzgerald consented to the entry of the judgment without admitting or denying any of the
The Court ordered disgorgement against Fitzgerald in the amount of $122,424, plus prejudgment
The Court also imposed a civil penalty of $51,385 and declined to impose additional penalties
The Commission's complaint, filed on February 21, 2002, alleged insider trading by
The complaint alleged that on February 2, 2000, an executive officer of CheckFree told
On February 18, 2000, Fitzgerald sold 5,000 shares at an average price of $82.085 per share.
In less than two weeks, Fitzgerald received a gain of $102,770.87 on an investment of
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