U.S. SECURITIES & EXCHANGE COMMISSION
Litigation Release No. 17944 / January 21, 2003
SEC v. Blackwell et al., (U.S.D.C. S..D. Ohio, Civil Action No.
C2-03-0063, filed January 21, 2003)
SEC v. Parker et al., (U.S.D.C. S.D. Ohio, Civil Action No.
C2-03-0065, filed January 21, 2003)
SEC v. Maxwell et al., (U.S.D.C. S.D. Ohio, Civil Action No.
C2-03-0064, filed January 21, 2003)
On January 21, 2003, the Securities and Exchange Commission filed
three related cases with the United States District Court for the
Southern District of Ohio, charging 11 individuals and two entities
with illegal insider trading in Worthington Foods, Inc.
("Worthington") securities prior to the announcement on October 1,
1999 of the Kellogg Company's ("Kellogg") acquisition of Worthington
In the first case, the SEC charged that during August and September
1999, Roger D. Blackwell ("Blackwell"), a resident of Columbus, Ohio,
illegally disclosed inside information he obtained while serving as a
director of Worthington about Kellogg's proposed acquisition of
Worthington to (1) his father Dale Blackwell, a resident of Upper
Arlington, Ohio, (2) son Christian Blackwell, a resident of Columbus,
Ohio, (3) his office assistant and close friend Kelley Hughes and her
husband Kevin Stacy, residents of Columbus, Ohio, (4) his close
business associate attorney Arnold Jack, a resident of Columbus, Ohio,
(3) Black-Jack Enterprises, Roger Blackwell's 50/50 investment
partnership with Jack, and (6) the Roger Blackwell and Associates
Pension Plan Trust, Roger Blackwell's marketing company's pension plan
(the "Blackwell Group"). In total, the Blackwell Group made
approximately $245,000 in ill-gotten profits by illegally trading on
the inside information.
In the second case, the SEC alleged that in August 1999, David W.
Maxwell, a resident of Westerville, Ohio, illegally disclosed inside
information obtained while he was a senior executive of Worthington,
about Kellogg's proposed acquisition of Worthington to his barber
Elton Jehn, a resident of Westerville, Ohio. Jehn made approximately
$192,000 in ill-gotten profits by illegally trading on inside
information.
Finally, in the third case, the SEC alleged that in August and
September 1999, William D. Parker, a resident of Somerset, Ohio,
disclosed inside information he obtained while serving as a director
of Worthington about Kellogg's proposed acquisition of Worthington, to
SNIPPETS:
U.S. SECURITIES & EXCHANGE COMMISSION
SEC v. Blackwell et al.,
SEC v. Parker et al.,
S.D. Ohio, Civil Action No. C2-03-0065, filed January 21, 2003)
On January 21, 2003, the Securities and Exchange Commission filed three related cases with
In the first case, the SEC charged that during August and September 1999, Roger D. Blackwell,
s, Ohio, his close business associate attorney Arnold Jack, a resident of Columbus, Ohio,
In total, the Blackwell Group made approximately $245,000 in ill-gotten profits by illegally
In the second case, the SEC alleged that in August 1999, David W. Maxwell, a resident of
Jehn made approximately $192,000 in ill-gotten profits by illegally trading on inside
Finally, in the third case, the SEC alleged that in August and September 1999, William D.
, a resident of Memphis, Tennessee.
In that case, the SEC alleged that while William Parker illegally tipped Harris, Charles
In settlement, William Parker and Danny Harris, without admitting or denying the allegations,
In total, the defendants in these three cases collectively made approximately $545,000 in
the SEC charges that that each of the defendants violated Section 10of the Securities
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