U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20062 / March 30, 2007
SEC v. Ricardo Cavallero et al., 2:06 CV 3282 (N.D. Illinois)
SEC Settles Insider Trading Case Against Juan Carlos Peralta for Over $1 Million and Dismisses Other Defendants
On March 26, 2007, the United States District Court for the Northern District of Illinois entered a Final Judgment and Order against Defendant Juan Carlos Peralta. The Final Judgment and Order imposes against Defendant Peralta a permanent injunction from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and orders disgorgement of $687,541.81, with prejudgment interest of $23,101.41 and a civil penalty of $368,698.71. Defendant Peralta consented to the issuance of the Final Judgment and Order without admitting or denying the allegations in the Complaint.
The Commission also dismissed its pending claims against Defendants Ricardo Cavallero, Elena H. De Cavallero, Sebastian Kohan Miller and Silvina Tobar De Miller in this action.
In its Complaint, filed on June 15, 2006, the Commission alleged that Defendant Peralta, a resident of Buenos Aires, Argentina, purchased 820 Maverick Tube Corp. call options and 6000 shares of Maverick Tube stock in a U.S.-based brokerage account while in possession of, and/or using, material, non-public information regarding Tenaris SA's proposed acquisition of Maverick Tube. The Commission charged Defendant Peralta, among others, with violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Commission also obtained an emergency asset freeze on Defendant Peralta's account, which prohibited the removal of the proceeds of the illegal transactions from the United States. (See Litigation Release No. 19731, June 19, 2006).