U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20569 / May 13, 2008
Securities and Exchange Commission v. John Turchetta, Civil Action No. 08-00819 (JDB) (D.D.C.) (filed May 13, 2008)
SEC Recovers Over $ 1.2 Million in Settled Insider Trading Action Relating to Royal Ahold - U.S. Foodservice Merger
The Securities and Exchange Commission today filed a settled civil injunctive action against John Turchetta of Naples, Florida. The complaint alleges that Turchetta purchased securities of U.S. Foodservice (USF) and caused others to trade, after he acquired material, nonpublic information concerning a proposed tender offer by Royal Ahold (Koninklijke Ahold N.V.) for the outstanding shares of USF common stock. Turchetta received the inside information from a USF vendor, who had been tipped by a senior officer of the company.
Turchetta has agreed to settle the Commission's action, without admitting or denying the allegations in the complaint, by consenting to the entry of a final judgment permanently enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The final judgment also orders Turchetta to pay disgorgement of $553,000 plus prejudgment interest thereon in the amount of $162,069, as well as a civil penalty of $553,000, for a total of $1,268,069. The settlement is subject to approval by the Court.
The Commission's investigation is continuing. The Commission acknowledges the assistance and cooperation of the Office of the United States Attorney for the Southern District of New York and the New York Office of the Federal Bureau of Investigation.