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U. S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21883 / March 14, 2011

Securities and Exchange Commission v. Robert L. Hollier and Wayne A. Dupuis, Civil Action No. 6:09-cv-00928 (W.D. La. March 11, 2011)

On March 11, 2011, the Honorable Tucker L. Melanšon of the U.S. District Court for the Western District of Louisiana entered final judgment against Robert L. Hollier (“Hollier”) of Opelousas, LA and Wayne A. Dupuis (“Dupuis”) of Youngsville, LA. Hollier and Dupuis were permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Judge Melanšon ordered Hollier and Dupuis to pay disgorgement jointly and severally in the amount of $41,800 representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $11,288.64 for a total of $53,088.64. The Court also imposed a civil penalty against Dupuis in the amount of $41,800, the full amount of his insider trading profits. The Court ordered Hollier and Dupuis to satisfy payment of these amounts within 30 days of the entry of the final judgment. Hollier and Dupuis consented to the entry of the final judgment without admitting or denying the allegations of the Commission’s Complaint.

The Complaint alleged that during the latter part of August 2006, Hollier had knowledge of pending merger talks between Warrior Energy Services Corporation (“Warrior”) and Superior Energy Services, Inc. (“Superior”), the information constituted material nonpublic information, and that Hollier tipped Dupuis about the pending merger during a Canada hunting trip that Hollier and Dupuis both attended. The Complaint further alleged that on September 18, 2006, the day he returned from the hunting trip, Dupuis purchased 5,000 shares of Warrior stock for approximately $85,000. Dupuis, who had no prior history of trading Warrior shares, sold the only two stocks in his portfolio to buy the Warrior shares. The Complaint further alleged that on September 25, 2006, Warrior announced a definitive merger agreement with Superior. The Warrior shares, which were then traded on the Nasdaq National Market, increased in price by almost 70% on the news that day. The Complaint also alleged that on October 3, 2006, Dupuis sold all of his Warrior stock for a profit of approximately $41,800.

 

http://www.sec.gov/litigation/litreleases/2011/lr21883.htm


Modified: 03/14/2011