U.S. Securities and Exchange Commission
Litigation Release No. 18074 / April 7, 2003
, 03 CR 302 (RWS) (S.D.N.Y)
Criminal Insider Trading Charges Brought against Chairman and President of
Computer Horizons Corp.
The Commission announced today that, on March 13, 2003, a grand jury
impaneled by the United States Attorney's Office for the Southern
District of New York indicted John J. Cassese on two criminal charges
of insider trading. Cassese was the chairman and president of Computer
Horizons Corp. The indictment alleges that Cassese violated Sections
10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5
and 14e-3 thereunder by engaging in insider trading in the stock of
Data Processing Resources Corporation ("DPRC") while in possession of
material, nonpublic information about a tender offer for DPRC common
stock by Compuware Corporation. Computer Horizons (based in New
Jersey), DPRC (based in Orange County, California) and Compuware
(based in Michigan) each engaged in the business of providing
temporary staffing of computer and information technology personnel.
According to the Indictment, on June 21, 1999, Cassese learned through
his business relationship with Compuware that Compuware would be
making a tender offer to acquire DPRC. The Indictment further alleges
that the next day, while in possession of this material, nonpublic
information, Cassese purchased 15,000 shares of DPRC common stock and
subsequently sold these shares at a profit of approximately $150,000.
In an earlier proceeding brought by the Commission, Cassese, without
admitting or denying the allegations in the Commission's complaint,
consented to the entry of a final judgment that permanently enjoined
him from future violations of Section 14(e) of the Exchange Act and
Rule 14e-3 thereunder. Cassese also agreed to disgorge $150,937.50 in
ill-gotten gains, plus prejudgment interest, and to pay a civil
penalty of $150,937.50. , Civil Action No. 02-01605 FMC (AJWx) (C.D.
Cal.) ().
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Modified 04/08/2003
SNIPPETS:
Criminal Insider Trading Charges Brought against Chairman and President of Computer Horizons
The Commission announced today that, on March 13, 2003, a grand jury impaneled by the United
Cassese was the chairman and president of Computer Horizons Corp.
The indictment alleges that Cassese violated Sections 10and 14of the Securities Exchange Act
Computer Horizons, DPRC and Compuware each engaged in the business of providing temporary
The Indictment further alleges that the next day, while in possession of this material,
In an earlier proceeding brought by the Commission, Cassese, without admitting or denying the
Cassese also agreed to disgorge $150,937.50 in ill-gotten gains, plus prejudgment interest,
Civil Action No. 02-01605 FMC (AJWx) (C.D.
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