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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20211 / July 26, 2007

SEC v. Euro Security Fund, et al., Case No. 98 Civ. 7347 (DLC) (U.S.D.C., S.D.N.Y.)

Commission Names Alberto and Serenella Lina in "Unknown Purchasers" Insider Trading Case

On July 26, 2007, the Commission filed a modified complaint to identify Alberto Lina and his wife, Serenella Lina, who had previously been named as "One or More Unknown Purchasers of Common Stock of Elsag Bailey Process Automation, N.V.", as persons who illegally traded in Elsag securities two days before the announcement of a tender offer for Elsag.

According to the modified complaint, during 1998, Alberto Lina was an employee of Finmeccanica S.p.A., an Italian state-controlled aerospace, defense, and engineering company that then owned 53 percent of Elsag's stock. The Commission alleges that Alberto Lina, in connection with his employment by Finmeccanica, received confidentially conveyed information concerning a tender offer, announced on October 14, 1998, by which Finmeccanica tendered its interest in Elsag for a price of $39.30 per share. Two days before that announcement, on October 12, 1998, the Linas had purchased 9,700 shares of Elsag through an account maintained in the name of Banca Privata Solare & Blum, a Swiss financial institution, for a total price of $196,425. On the day after the announcement of the tender offer, Elsag's stock closed at $36.00, an increase of 90 percent over the previous day's close. The Commission alleges that the Linas garnered a profit of $152,425.

The Commission's modified complaint alleges that the Linas' trading violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-3 thereunder. The Commission seeks a permanent injunction, disgorgement, and a penalty.

For further information concerning this matter, see Litigation Releases 17045, 16367, 16196, 15981, and 15942.

SEC Complaint in this matter

 

http://www.sec.gov/litigation/litreleases/2007/lr20211.htm


Modified: 07/26/2007