U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22917 / February 4, 2014
Securities and Exchange Commission v. Rex C. Steffes, Cliff M. Steffes, Bret W. Steffes and Rex R. Steffes, Civil Action No. 10-cv-6266 (N.D. Ill., filed September 30, 2010)
Jury Finds Defendants Not Liable for Insider Trading
On January 27, 2014, following a nine day trial, an eight-person federal jury declined to find Rex C. Steffes and his three sons, Cliff M. Steffes, Bret W. Steffes and Rex R. Steffes, liable for violating the securities laws. The Commission filed a Complaint in this matter on September 30, 2010 alleging that the defendants had engaged in insider trading, in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, by purchasing the securities of Florida East Coast Industries, Inc. prior to a May 8, 2007 announcement that the company was being acquired by the Fortress Investment Group.