U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16326 / October 4, 1999
Securities and Exchange Commission v. Jeffrey Spiegel, 99 Civ. 10204 (S.D.N.Y.)
The Securities and Exchange Commission today filed a complaint in the United States District Court for the Southern District of New York against Jeffrey Spiegel ("Spiegel") of New York, New York. The Complaint alleges that Spiegel engaged in insider trading in advance of public announcements concerning the securities of eight publicly traded companies: Owen Healthcare, Inc.; Health Images, Inc.,; Starsight Telecast, Inc.; American Medical Response, Inc.; Ontrak Systems, Inc.; Reading & Bates Corp.; Rohr, Inc.; and Georgia-Pacific Corp. Spiegel also recommended the securities to certain family members and entered into a tipping arrangement with a friend and trading partner. According to the Complaint, Spiegel received tips containing material nonpublic information concerning the securities of these eight companies from his ex-girlfriend, Tina Eichenholtz. Eichenholtz had herself received these tips from Jeffrey Streich, who had received them from Marisa Baridis, a former employee in the compliance departments of two Wall Street investment firms who had access to confidential information concerning the firms' clients. The Complaint alleges that Spiegel, trading in the securities of four companies, realized illegal trading profits of $66,281 based on the tips from Eichenholtz. Spiegel also received between $25,000 and $50,000 in cash in exchange for the tips he provided to his friend and trading partner. Of that amount, Spiegel gave Eichenholtz approximately $11,000. Spiegel's tippees collectively traded in all eight of the securities and realized total profits of approximately $917,925.
Simultaneous with the filing of the Complaint, Spiegel consented, without admitting or denying the allegations in the Complaint, to the entry of a Final Judgment enjoining him from future violations of Section 10(b) and 14(e) of the Exchange Act and Rule 10b-5 and Rule 14e-3 thereunder, and requiring him to disgorge illegal trading profits of $984,206.84, plus prejudgment interest. Based on his demonstrated inability to pay the full disgorgement amount, all but $99,469 of his disgorgement amount was waived.
For information about related matters, see Lit. Rel. No. 16227 (Aug. 2, 1999); Lit. Rel. No. 15741 (May 15, 1998); Securities Exchange Act Rel. No. 40787 (Dec. 14, 1998); Securities Exchange Act Rel. No. 40788 (Dec. 14, 1998); Lit. Rel. No. 15990 (Dec. 3, 1998); Lit. Rel. No. 16090 (Mar. 18, 1999); Securities Exchange Act Rel. No. 41182 (Mar. 18, 1999); Securities Exchange Act Rel. No. 41220 (Mar. 29, 1999).
The Commission acknowledges the assistance provided by the U.S. Attorney for the Southern District of New York, the District Attorney for New York County, the New York Stock Exchange, the American Stock Exchange, and the Pacific Exchange, Inc.
The Commission's investigation in this matter is continuing.