U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21209 / September 14, 2009

SEC v. Allen W. Moss, Case 1:09-cv-01611 (W.D. La. September 14, 2009)

SEC Files Settled Insider Trading Charges Against Allen W. Moss

The Securities and Exchange Commission (Commission) announced today that it has filed a settled civil injunctive action in the United States District Court for the Western District of Louisiana against Allen W. Moss. The Commission alleges that Moss engaged in unlawful trading in the securities of Callon Petroleum Company (Callon Petroleum) on the basis of material nonpublic information before Callon Petroleum announced on November 26, 2008 that it suspended development of a significant drilling project.

The complaint alleges that on November 26, 2008, Moss' long-time live-in girlfriend, a Callon Petroleum employee, called him and told him Callon Petroleum was having meetings and planned an announcement later that day. The complaint also alleges that in the several weeks prior to November 26, Moss' girlfriend told him she was worried about her job security because of Callon Petroleum's significant investment in the drilling project, closed-door meetings within the company, and other events she felt meant news about the project would be negative. The complaint further alleges that Moss understood the information was confidential, yet he sold short 19,000 Callon Petroleum shares shortly before the market close on November 26, 2008, while in possession of material nonpublic information. According to the complaint, Moss covered his short sale the next trading day and realized a $75,400 profit.

Moss has consented, without admitting or denying the allegations in the complaint, to a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering him to pay disgorgement of $75,400, plus prejudgment interest of $2,091, and imposing a civil penalty of $75,400.

SEC Complaint