Believe it-This case is far from over. The SEC reported today as follows:
GEORGIA ACCOUNTANT SETTLES SEC CHARGES OF INSIDER TRADING AND SELLING
UNREGISTERED SYSTEMS OF EXCELLENCE SECURITIES The Commission today announced
that on December 14, 2001 the Honorable Gladys Kessler of the United States
District Court for the District of Columbia entered a final judgment against
Richard Morrisey, a Georgia accountant, permanently enjoining him from
violations of the antifraud and registration provisions of the federal
securities laws and requiring him to pay disgorgement and prejudgment
interest. The Commission has now obtained settlements from all four
defendants in this action. The Commission's complaint, filed on February 15,
2001, charged that Morrisey, who performed in-house bookkeeping services for
Systems of Excellence (SOE) in 1995 and 1996, learned in detail certain
aspects of the SOE fraud in August and September 1996. Thereafter, but
before public disclosure had been made, Morrisey resold 95,000 SOE shares
while in possession of material, non-public information, in violation of the
antifraud provisions contained in Section 10(b) of the Securities Exchange
Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5. Additionally,
before learning of the fraud, Morrisey resold another 220,000 SOE shares in
violation of the strict-liability registration provisions contained in
Sections 5(a) and 5(c) of the Securities Act of 1933 (Securities Act). In
total, Morrisey realized illegal profits of $272,182 on the resale of these
315,000 shares. Morrisey, without admitting or denying the SEC's
allegations, consented to the entry of a court order that: (i) permanently
enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5
thereunder, and Sections 5(a) and (c) of the Securities Act; and (ii)
requires him to disgorge $272,182 plus prejudgment interest of $132,540,
provided that all shall be waived but for the payment of $35,100,
prejudgment interest of $14,083, and the surrender of 200 shares of Texas
Instruments stock to the Court-appointed receiver, and no penalties assessed
based on his inability to pay. [SEC v. Maria Iacovelli, Richard Morrisey,
Individually, as Custodian for Chelsea Adair Morrisey, as Custodian for Eric
Ryan Morrisey, and as Custodian for Andrew Jason Morrisey, Jerry
Thornthwaite, and Marvin Kogod, Civil Action No. 1:01CV00344(GK) (D.D.C.)]
(LR-17280) INVESTMENT COMPANY ACT RELEASES HSBC HOLDINGS PLC, ET AL. The
Commission has issued a temporary order |
