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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
BANK RIDGEDALE VIOLATIONS COMPLAINT ARNESON AMOUNT COMMISSION THEREUNDER SECURITIES COMPLAINT ALLEGES ROBERT ARNESON UNITED STATES PERMANENT INJUNCTION ENJOINING DISTRICT INSIDER TRADING GEORGE KLINE CIVIL PENALTY FEDERAL RESERVE MINNESOTA CONSTITUTED VIOLATIONS REPORT STOCK ADMITTING DENYING ALLEGATIONS ENTRY PAY DISGORGEMENT PREJUDGMENT |
U.S. SECURITIES & EXCHANGE COMMISSION
LITIGATION RELEASE NO. 18321 / September 3, 2003
COMMISSION FILES COMPLAINT AGAINST ROBERT ARNESON AND RIDGEDALE STATE BANK
UNITED STATES SECURITIES AND EXCHANGE COMMISSION v. ROBERT ARNESON AND
RIDGEDALE STATE BANK, (U.S. D.C. Minn. 2003) 003-CV-5160.
The U.S. Securities and Exchange Commission announced today that it
filed and simultaneously settled an injunctive action in the United
States District Court for the District of Minnesota against Robert
Arneson ("Arneson") and Ridgedale State Bank ("Ridgedale Bank"). The
Commission's complaint alleges Arneson violated Sections 10(b) and
16(a) of the Securities Exchange Act of 1934 ("Exchange Act") and
Rules 10b-5 and 16a-3 thereunder (15 U.S.C. § 78j(b) and § 78p(a) and
17 C.F.R. §240.10b-5 and §240.16a-3). The Commission's complaint
further alleges that Ridgedale Bank violated Section 16(a) of the
Exchange Act and Rule 16a-3 thereunder (15 U.S.C. § 78p(a) and 17
C.F.R. §240.16a-3).
The Commission's complaint alleges that Arneson engaged in insider
trading by trading in the securities of Tower Automotive, Inc. and
Kinnard Investments, Inc., while in possession of material, nonpublic
information provided by George Kline. The complaint alleges that this
constituted violations of Section 10(b) of the Exchange Act and Rule
10b-5 promulgated thereunder.
The Commission complaint also alleges that both Arneson and Ridgedale
Bank aided and abetted George Kline's violations of failing to report
stock transactions by a corporate insider by providing loans to a
corporation controlled by Kline, which Kline used to purchase stock.
This activity constituted violations of Section 16(a) of the Exchange
Act and Rule 16a-3 thereunder.
Areneson consented, without admitting or denying the allegations in
the complaint, to the entry of an order of permanent injunction
enjoining him from violations of Sections 10(b) and 16(a) of the
Exchange Act and Rules 10b-5 and 16a-3 thereunder. Arneson also
consented to pay disgorgement for the insider trading violations in
the amount of $15,094, prejudgment interest in the amount of
$5,305.21, a civil penalty in the amount of $15,094, and an additional
civil penalty in the amount of $25,000 for aiding and abetting George
Kline's reporting violations.
Ridgedale Bank consented, without admitting or denying the allegations
in the complaint, to the entry of an order of permanent injunction
enjoining Ridgedale Bank from violations of Section 16(a) of the
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