U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19917 / November 16, 2006
Securities and Exchange Commission v. David N. Anderson and Nancy C. Dipietro, No. 3:06 CV 196 (W.D.N.C.)
Former Senior Vice President of LendingTree Settles Insider Trading Case with SEC
The Securities and Exchange Commission announced today that on November 14, 2006, the Honorable Graham C. Mullen, United States District Judge for the Western District of North Carolina, entered a final judgment against David N. Anderson, former senior vice president of LendingTree, in an insider trading case the Commission filed in April 2006. See SEC v. Anderson and Dipietro, No. 3:06 CV 196 (W.D.N.C. April 24, 2006)/Lit. Rel. No. 19665. Without admitting or denying the allegations in the complaint, Anderson consented to the entry of the final judgment which (i) permanently enjoins him from future violations of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, (ii) orders him to pay a civil penalty of $219,366.40, and (iii) bars him from serving as an officer or director of any public company.
The Commission's complaint alleged that, shortly before a May 5, 2003 public announcement that LendingTree was being acquired by USA Interactive at a substantial premium to LendingTree shareholders, Anderson (then LendingTree's senior vice president of new business development) improperly provided material, nonpublic information concerning the pending acquisition to three friends and colleagues at LendingTree -- Michael J. Ricks, John H. Woody, and Mark P. Mead -- as well as to a friend outside the company, Nancy C. Dipietro. The complaint alleged that Anderson's tippees then purchased shares of LendingTree while in possession of this material, nonpublic information, and made illegal profits totaling $219,366.40 following the announcement of the acquisition. The complaint alleged that Anderson violated Exchange Act Section 10(b), and Rule 10b-5 thereunder, by improperly tipping Ricks, Woody, Mead, and Dipietro with material, nonpublic information concerning the pending acquisition.
This concludes the Commission's action against Anderson. In a related criminal case brought by the U.S. Attorney's Office for the Western District of North Carolina, Anderson has pled guilty to a felony count of making false statements to the Commission's staff. Anderson is awaiting sentencing in that matter.
The Commission previously filed and settled insider trading cases against Anderson's tippees, see SEC v. Anderson and Dipietro, No. 3:06CV196 (W.D.N.C. July 11, 2006)/Lit. Rel. No. 19762 and SEC v. Ricks, Woody, and Mead, No. 3:04CV576 (W.D.N.C. Nov. 22, 2004)/Lit. Rel. No. 18983, and has filed insider trading cases against other individuals in connection with this investigation. See SEC v. Paquette and Lawrence, No. 3:05CV412 (W.D.N.C. Sept. 26, 2005)/Lit. Rel. No. 19393; SEC v. Talbot, No. CV 04-4556 (C.D. Cal. June 24, 2004)/Lit. Rel. No. 18762; and SEC v. Bartlett, No. 3:03CV463 (W.D.N.C. Sept. 24, 2003)/Lit. Rel. No. 18361.
The Commission's investigation continues.