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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21871 / March 3, 2011

SEC v. Gregory A. Seib, Civil Action No. 1:11-CV-0626 (N.D. Ga.)

SEC Charges Gregory A. Seib with Insider Trading

On March 1, 2011, the Securities and Exchange Commission filed a civil injunctive action against Gregory A. Seib, a 40-year-old resident of Atlanta, Georgia. The Commission alleges that, after misappropriating confidential information from his employer regarding a pending merger agreement involving NASDAQ-listed Cambridge Display Technology, Inc. (“Cambridge”), Seib purchased Cambridge stock and call options, ultimately reaping profits in excess of $71,000.

The Commission’s complaint, filed in the United States District Court for the Northern District of Georgia, alleges that between April and July 2007, Seib purchased 20 call options and 10,514 shares of Cambridge stock prior to a public announcement on July 31, 2007, that Cambridge would be acquired by Sumitomo Chemical Company, Ltd. According to the complaint, at the time of Seib’s illegal trades, Seib’s boss was the principal of an unregistered investment adviser, as well as an outside director of Cambridge. The Complaint alleges that Seib had access to, and viewed, confidential merger-related e-mails received by his boss, and that Seib first purchased Cambridge stock and call options on the date that Cambridge and Sumitoma entered into a confidentiality agreement. The complaint further alleges that Seib’s subsequent purchases of Cambridge stock, in four different accounts, coincided with significant events in the merger negotiations and/or e-mails that his boss received regarding the merger.

In its complaint, the Commission charges Seib with violating the antifraud provisions of the federal securities laws. The Commission seeks a permanent injunction against future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as disgorgement of Seib’s ill-gotten gains, prejudgment interest and a monetary penalty. Without admitting or denying the allegations in the complaint, Seib has offered to accept a permanent injunction and to pay a total of $156,702.16, consisting of disgorgement of $71,654.14, prejudgment interest of $13,393.88 and a monetary penalty equal to the amount of his disgorgement, or $71,654.14.

The Commission recognizes the Financial Industry Regulatory Authority for their assistance in this matter.

 

http://www.sec.gov/litigation/litreleases/2011/lr21871.htm


Modified: 03/03/2011