U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19734 / June 21, 2006
Securities and Exchange Commission v. Frank R. V. Loomans, Defendant, and Luc F. Loomans, Relief Defendant, Civil Action File No. 1:05-CV-0400 (N.D. Ga.).
On June 19, 2006, the Honorable Julie E. Carnes, U. S. District Judge for the Northern District of Georgia, entered a final judgment as to defendant Frank R. V. Loomans ("F. Loomans"), a former manager of investor relations for Cox Communications, Inc. ("Cox").
The final judgment enjoined F. Loomans from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. F. Loomans was ordered to pay disgorgement, prejudgment interest and a civil penalty in the respective amounts of $285,505, $75,355.33 and $25,000, and was permanently barred from serving as an officer or director of a public company. F. Loomans consented to the entry of the final judgment without admitting or denying any of the allegations of the Commission's Complaint. F. Loomans was ordered to pay the above amounts within 30 days from entry of the final judgment. Upon full payment by F. Loomans, the Order provides that the Commission shall move to dismiss its claims with prejudice against relief defendant Luc F. Loomans ("L. Loomans").
The Complaint alleged that between July 2000 and July 2001, F. Loomans engaged in insider trading in options for securities of Cox and of Concurrent Computer Corporation, which had a business relationship with Cox. It further alleged that to carry out the scheme, F. Loomans placed orders to trade in a brokerage account in the name of his father, L. Loomans, via the Internet using a computer at Cox and by telephone. F. Loomans was a resident of Atlanta, Georgia, and his father resided near Brussels, Belgium. The Complaint alleged that F. Loomans obtained highly sensitive and detailed nonpublic information due to his involvement in preparing Cox quarterly earnings releases, and received material nonpublic information on publicly traded companies with which Cox had proposed business transactions. The Complaint alleged that while in possession of material nonpublic information, F. Loomans conducted securities trades in L. Loomans' brokerage account. As a result, he illegally gained and was ultimately enriched by $285,505.
See also: L.R. 19075 / February 10, 2005.