Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (7633)	2/11/1999 10:45:00 PM
From: Ian@SI	Respond to of 10921

Looks like the SEC has reeled in a small fish for insider trading. Perhaps, we'll see a more level playing field should the rest of the illegal insider traders get the message. And perhaps if a pig had a feather somewhere, it could fly. ;-) ++++++++++++++++++++++++++++++ February 11, 1999 SEC Alleges Inside Trading in Tech Stocks by Consultant>ADBE By Judith Burns WASHINGTON (Dow Jones)--The Securities and Exchange Commission announced it has settled a case alleging an investor relations consultant illegally traded on inside information about three California high-tech companies. The SEC's complaint, filed Thursday in the U.S. District Court for the Northern District of California, names Lisa Herbst, owner of Herbst Consulting, Pleasanton, Calif. Without admitting or denying the SEC's allegations, Herbst agreed to settle the case by returning realized and unrealized profits on the stock trades, with interest, and pay a civil penalty. In all, Herbst will pay $32,799, and has agreed not to commit any future violations of federal securities laws, the SEC said. Herbst's attorney wasn't immediately available to comment on the settlement. Between 1995 and 1998, the SEC alleged Herbst engaged in inside trading on three stocks, Adobe Systems Inc. (ADBE), based in San Jose, Asyst Technologies Inc. (ASYT), Fremont, Calif., and Splash Technology Holdings Inc. (SPLH), Sunnyvale, Calif. According to the SEC, Herbst was hired to prepare and distribute press releases for the firms. The consultant traded on the news before the announcements she worked on were released to the public, the complaint states. Although this is the first time the SEC's San Francisco office has brought an insider-trading case against an investor relations consultant, it isn't a first for the agency. Last June, Portland-based consultant Heidi Flannery settled a case brought by the SEC's Denver office that alleged she used inside information on three clients to benefit herself. Flannery didn't admit or deny the allegations of insider trading. In Herbst's case, the SEC alleged that while acting as a consultant to Splash Technology, she learned the company would report better than expected results for the fourth quarter of 1996. Based on that information, the SEC said Herbst bought 500 shares of Splash Technology before the earnings announcement and sold them a few days after the release, for a $4,560 profit. One year later, Herbst learned that Splash Technology's earnings announcement would project lower growth in 1998. The SEC said she used that information to sell 700 shares of the company at $22.50 a share. The stock dropped to a low of $12.75 after the earnings release. "As a result of this sale, Herbst avoided losses of $6,342," the SEC complaint states. Herbst netted more than $2,000 in profits on inside trading in Adobe Systems stock in March 1995 in advance of an upbeat earnings report, the SEC said. As for Asyst Technologies, the SEC said Herbst used information about a stock split to buy shares in July 1997. Herbst still owns the shares, and has unrealized profits of $2,352, according to the SEC. She is also alleged to have bought shares in advance of a report of slightly better than expected earnings report for Asyst Technologies, generating several hundred dollars of unrealized profits. -By Judith Burns (202) 862-6692; judith.burns@dowjones.com