SECURITIES AND EXCHANGE COMMISSION
Washington D.C.
LITIGATION RELEASE NO. 15476 / September 4, 1997
SECURITIES AND EXCHANGE COMMISSION V. HUGH THRASHER, JOHN H. ANDERSON, EZRA
CHAMMAH, STANLEY ELBAUM, SCOTT FORBES, GUILLERMO GOMEZ a/k/a WILLIAM GOMEZ,
STEPHEN V.R. GOODHUE, JR., IRA GORMAN, GORMAN COMMODITIES & SECURITIES,
INC., ******JONATHAN S. HIRSH******, RONALD KUZNETSKY, DARRELL SANDY MARSH, JACK P.
MARSH, MICHAEL R. NEWMAN, ROGER K. ODWAK, ANGELO PETROTTO, LEE ROSENBLATT,
ROBERT SACKS, JEFFREY A. SANKER, DAVID SCHAEN, LEONARD SCHAEN, JULIAN
SCHOR, GREGG R. SHAWZIN, AND MARK R. SHAWZIN, 92 Civ. 6987 (JFK)
(S.D.N.Y.)
The Securities and Exchange Commission ("Commission") announced that
the United States District Court for the Southern District of New York
recently entered a judgment against defendant William Gomez ("Gomez").
According to the Commission's amended complaint filed on March 4, 1993, the
defendant engaged in insider trading by purchasing the securities of Motel
6, L.P. ("Motel 6") while in possession of material, nonpublic information
concerning a planned tender offer for the company.
On August 5, 1997, the Court entered Final Consent Judgments of
Permanent Injunction and Other Relief As To Guillermo Gomez a/k/a William
Gomez. Without admitting or denying the allegations of the amended
complaint, Gomez consented to a permanent injunction from violating
Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules
10b-5 and 14e-3 thereunder. Gomez agreed to pay $131,104 in disgorgement
of profits and prejudgment interest thereon, but in light of a demonstrated
inability to pay based upon his sworn representations in a statement of
financial condition, the Commission agreed that all of the payment would be
waived and Gomez would not pay a civil penalty pursuant to the Insider
Trading and Securities Fraud Enforcement Act of 1988.
The Commission's amended complaint alleges that between late May 1990
and until and including July 12, 1990, Hugh Thrasher, an insider at Motel
6, for his personal benefit and in breach of his duty to Motel 6 and its
shareholders, communicated material, nonpublic information concerning
negotiations for the acquisition of Motel 6 to his close personal friend,
Carl Harris ("Harris"). The Commission alleges that Harris thereafter
tipped numerous people, including Gomez. |
