WALLSTREET FOOTBALL->Steven Patton passed that information to Michael
Nicolaou (Nicolaou), who was then his registered representative at GBI
Capital Partners Inc. (GBI), now Ladenburg Capital Management Inc.
(Ladenburg), and indicated the news came from his brother, Eric Patton.
Nicolaou then passed some or all of the information to three
individuals: Konstantine Drakopoulos, a GBI/Ladenburg registered
representative, Panayiotis Papaseraphim, and John Tsiforis. Two of
Nicolaou's tippees then passed the information to other individuals:
Konstantine Drakopoulos tipped Dimitrios Kostopoulos, a former
registered representative at National Discount Brokers Corporation,
Lampros Moumouris, and Angelo Rigas; and John Tsiforis tipped
Konstantinos Orfanakos, Constantine Stamoulis and Sandra Tsiforis.
HE SCORREEESSS!!THE BROKERS WIN!!THE BROKERS WIN!!
SEC FILES INSIDER TRADING ACTION AGAINST 14 INDIVIDUALS, INCLUDING CURRENT
AND FORMER REGISTERED REPRESENTATIVES, IN CONNECTION WITH THE ACQUISITION OF
WLR FOODS, INC. BY PILGRIM'S PRIDE CORPORATION
The Commission today announced the filing of a civil injunctive action
against 14 individuals for violations of the antifraud provisions of the
securities laws in connection with trading in the common stock of WLR
Foods, Inc. (WLRF) immediately preceding an announcement, on September
27, 2000, of the acquisition of WLRF by Pilgrim's Pride Corporation. In
total, the unlawful trading produced profits of nearly $295,000.
The complaint alleges that, on or about September 26, 2000, Eric Patton,
then an executive with WLRF, communicated to his brother, Steven Patton,
that there would be an announcement within two or three days that a
company would be acquiring WLRF at a price of $14 per share. On or
about September 26, Steven Patton passed that information to Michael
Nicolaou (Nicolaou), who was then his registered representative at GBI
Capital Partners Inc. (GBI), now Ladenburg Capital Management Inc.
(Ladenburg), and indicated the news came from his brother, Eric Patton.
Nicolaou then passed some or all of the information to three
individuals: Konstantine Drakopoulos, a GBI/Ladenburg registered
representative, Panayiotis Papaseraphim, and John Tsiforis. Two of
Nicolaou's tippees then passed the information to other individuals:
Konstantine Drakopoulos tipped Dimitrios Kostopoulos, a former
registered representative at National Discount Brokers Corporation,
Lampros Moumouris, and Angelo Rigas; and John Tsiforis tipped
Konstantinos Orfanakos, Constantine Stamoulis and Sandra Tsiforis. The
Complaint further alleges that Konstantine Drakopoulos and Angelo Rigas
tipped three additional members of the Rigas family: Gregory Rigas,
George Rigas, and Antonia Bregianos.
In its complaint, the Commission requests that the Court enjoin the
defendants (except the relief defendants) from violating the antifraud
provisions of the Securities Exchange Act of 1934 (Exchange Act),
Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5, and that
the Court issue an order directing these defendants to disgorge illegal
trading profits with prejudgment interest, and to pay civil money
penalties, pursuant to Section 21A of the Exchange Act. As to the
relief defendants, the complaint seeks an order that these defendants
disgorge illegal trading profits with prejudgment interest.
The United States Attorney's Office for the Eastern District of New
York, on the same day, announced the handing-up of an eleven-count
indictment against Konstantine Drakopoulos, Kostopoulos, Angelo Rigas,
Moumouris, Stamoulis, John Tsiforis, Orfanakos, Eric Patton and Steve
Patton. The indictment charged Konstantine Drakopoulos, Kostopoulos,
Angelo Rigas, Moumouris, Stamoulis, John Tsiforis and Orfanakos with
conspiracy to commit securities fraud and securities fraud; Konstantine
Drakopoulos with false statements made to the Commission staff;
Orfanakos with false statements made to the Commission staff, among
others, and with perjury; John Tsiforis with false statements and
perjury; and Eric Patton and Steven Patton with perjury.
Nicolaou, without admitting or denying the Commission's allegations, has
consented to an order permanently restraining and enjoining him from
violating Section 10(b) of the Exchange Act and Exchange Rule 10b-5.
The order also directs Nicolaou to pay disgorgement, including
prejudgment interest, in the amount of $22,419, but which, based upon
the sworn representations in Nicolaou's Statement of Financial Condition
that he submitted to the Commission, waives payment of $21,859, and does
not order him to pay a civil money penalty. Following the entry of an
injunction, Nicolaou has consented to the entry of a Commission Order
pursuant to Section 15(b)(6) of the Exchange Act barring him from
association with any broker or dealer.
Papaseraphim, without admitting or denying the Commission's allegations,
also has consented to an order permanently restraining and enjoining him
from violating Section 10(b) of the Exchange Act and Exchange Rule 10b-
5, and has agreed to pay disgorgement, including prejudgment interest,
in the amount of $5,906, representing the amount of profits earned by
his trading, and a civil penalty of $5,297. [SEC v. Eric Patton, et
al., Civil Action No. 02 CV 2564, RR, USDC, EDNY] (LR-17495 |
