U.S. SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 21389 / January 22, 2010

Securities and Exchange Commission v. Steven E. Nothern (United States District Court for the District of Massachusetts, Civil Action No. 05-CV-10983 (NMG))

SEC Secures Settlement with Former Mutual Fund Manager, Steven A. Nothern, Following a Federal Jury's Verdict

The Securities and Exchange Commission announced today that Steven E. Nothern of Scituate, Massachusetts, who had previously been found liable for insider trading by a federal jury, has agreed to pay a civil penalty of $460,000 and to be enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In June 2009, a federal jury in Boston, Massachusetts found Nothern, a former Senior Vice President and manager of seven fixed income mutual funds for Massachusetts Financial Services Company, liable for insider trading when he purchased and tipped others to purchase U.S. Treasury 30-year bonds ahead of the October 31, 2001, Treasury Department announcement that it was suspending the future issuance of long bonds. The proposed settlement is subject to the Court's approval. Nothern has also agreed to be barred from association with any investment adviser, with the right to reapply after five years, in a separate administrative proceeding before the Commission. This action is one of several brought by the Commission arising from trading in U.S. Treasury 30-year bonds.

For more information about this and related cases, see the Commission's Litigation Release Nos. 21099 (June 22, 2009), 18322 (September 4, 2003), 18453 (November 12, 2003), and 19223 (May 12, 2005).

 
http://www.sec.gov/litigation/litreleases/2010/lr21389.htm

Last modified: 1/22/2010