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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20131 / May 25, 2007

SEC v. Raymond C. Chop and Nicholas F. Chop, Civil Action File No. 1:07-CV-1176 (N.D. Ga. May 23, 2007)

The Securities and Exchange Commission today announced the filing of an action against Raymond C. Chop and Nicholas F. Chop, residents of Florida, for engaging in insider trading in the securities of Serologicals, Inc. (Serologicals). The Commission's complaint, filed on May 23, 2007, in the United States District Court for the Northern District of Georgia, alleges that the defendants purchased securities of Serologicals while in possession of material nonpublic information in connection with an impending acquisition of Serologicals by Millipore Corporation (Millipore).

The Commission's complaint alleges that on April 23, 2006, the defendants met with a Serologicals employee who informed the defendants that Serologicals was in the process of being sold. The complaint further alleges that on April 24, 2006, the morning after learning of Serologicals' impending merger and based upon that knowledge, defendant Raymond C. Chop purchased 500 shares of Serologicals stock and defendant Nicholas F. Chop purchased 400 shares of Serologicals stock. On April 25, 2006, before the market opened, Millipore publicly announced its agreement to acquire Serologicals at $31.55 per share. Serologicals' stock subsequently closed up $7.83 from the previous day to $31.55 per share (a more than 34% increase). Defendant Raymond Chop reaped a profit of approximately $3,785 and defendant Nicholas Chop gained $2,897.

The complaint alleges that by their conduct, Raymond C. Chop and Nicholas F. Chop violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder.

In a consent filed with the complaint, Raymond C. Chop and Nicholas F. Chop agreed, without admitting or denying the allegations in the complaint, to the entry of a final judgment permanently enjoining them from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. In addition, defendant Raymond C. Chop consented to pay disgorgement of $3,785.12, plus prejudgment interest of $172.83, and a civil penalty of $3,785.12. Further, defendant Nicholas F. Chop consented to pay disgorgement of $2,897.61, plus prejudgment interest of $132.31, and a civil penalty of $2,897.61.

SEC Complaint in this matter

 

http://www.sec.gov/litigation/litreleases/2007/lr20131.htm


Modified: 05/25/2007