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U.S. Securities and Exchange Commission

Litigation Release No. 22044 / July 15, 2011

SEC v. Mark Anthony Longoria, et al.,Civil Action No. 11-CV- 0753 (SDNY) (JSR)

SEC Obtains Final Judgment Against Daniel L. DeVore

The SEC announced that the Honorable Jed S. Rakoff, United States District Judge, United States District Court for the Southern District of New York, entered a Final Judgment on Consent as to Daniel L. DeVore on July 12, 2011, in the SEC’s insider trading case, SEC v. Mark Anthony Longoria, et al., 11-CV-0753 (SDNY) (JSR). The SEC filed its Complaint on February 3, 2011, charging two expert network employees and four consultants with insider trading for illegally tipping hedge funds and other investors. On February 8, 2011, the SEC filed an Amended Complaint, charging a New York-based hedge fund and four hedge fund portfolio managers and analysts who illegally traded on confidential information obtained from technology company employees moonlighting as expert network consultants. The scheme netted more than $30 million from trades based on material, nonpublic information about such companies as AMD, Seagate Technology, Western Digital, Fairchild Semiconductor, and Marvell. The charges were the first against traders in the SEC's ongoing investigation of insider trading involving expert networks.

The SEC alleged that DeVore, a Global Supply Manager at Dell, was privy to confidential information about Dell’s internal sales forecasts as well as information about the pricing and volume of Dell’s purchases from its suppliers. DeVore regularly provided Primary Global Research LLC (“PGR”) and PGR clients with this inside information so it could be used to trade securities. From 2008 to 2010, DeVore received approximately $145,000 for talking to PGR and its clients.

The Final Judgment entered against DeVore: (1) permanently enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”), Exchange Act Rule 10b-5, and Section 17(a) of the Securities Act of 1933; (2) orders him liable for disgorgement of ill-gotten gains of $145,750, together with prejudgment interest of $6,098.50, for a total of $151,848.50; and (3) permanently bars him from acting as an officer or director of a public company. Based on DeVore’s agreement to cooperate with the SEC, the Court is not ordering Defendant to pay a civil penalty.

 

http://www.sec.gov/litigation/litreleases/2011/lr22044.htm


Modified: 07/19/2011