U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20626 / June 20, 2008
Securities and Exchange Commission v. Adrian P. Di Vita, Civil Action No. 1:08-cv-01060 (CKK) (D.D.C.)
SEC Files Settled Insider Trading Action Against Adrian P. Di Vita
The Securities and Exchange Commission today filed a settled insider trading action in the United States District Court for the District of Columbia against Adrian P. Di Vita, a former manager at Williams-Sonoma, Inc. In its complaint, the Commission alleged that, by attending certain meetings with senior management and otherwise, Di Vita received material nonpublic information that enabled him to know that Williams-Sonoma would lower its earnings guidance for fiscal year 2006 and the third quarter of that year when the company issued a scheduled earnings press release on August 24, 2006. With that information, and prior to the issuance of the press release, Di Vita sold all 707 of his Williams-Sonoma Stock Fund units and additionally purchased 1,000 put option contracts on Williams-Sonoma stock. After Williams-Sonoma issued its August 24 press release, the company's stock price fell by more than eight percent, and Di Vita sold his put options. As a result of his trading in the stock fund units and the put options, Di Vita avoided losses and had profits totaling $67,690.
In its complaint, the Commission further alleged that Di Vita, by virtue of his conduct, violated antifraud provisions of the federal securities laws. Without admitting or denying the allegations in the Commission's complaint, Di Vita has offered to settle the action. Di Vita has consented to the entry of a final judgment permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5; ordering him to pay $76,932.80 in disgorgement of ill-gotten gains and losses avoided plus prejudgment interest; and ordering him to pay a civil penalty of $67,690.
The Commission acknowledges the assistance of the Chicago Board Options Exchange in this matter.