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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20188 / July 10, 2007

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

On July 2, 2007, the Honorable J. Owen Forrester, U. S. District Judge for the Northern District of Georgia, entered a Final Judgment as to defendants Raymond C. Chop and Nicholas F. Chop. The order restrained and enjoined the defendants from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The defendants consented to the entry of the order without admitting or denying any of the allegations of the Commission's complaint. Further, the Court ordered disgorgement against Raymond C. Chop in the amount of $3,785, plus prejudgment interest of $172, and a civil penalty of $3,785. The Court also ordered disgorgement against Nicholas F. Chop in the amount of $2,897, plus prejudgment interest of $132, and a civil penalty of $2,897.

The Commission's complaint, filed on May 23, 2007, alleged 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 alleged 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 Corporation 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.

See also: L.R. 20131 (May 25, 2007)

 

http://www.sec.gov/litigation/litreleases/2007/lr20188.htm


Modified: 07/10/2007