U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16718 / September 21, 2000
Securities and Exchange Commission v. Joseph P. Webster, Civil Action No.00-CV-02246
The Commission today filed insider trading charges against Joseph P. Webster, a resident of North Carolina and former president of Priority Telecom, a UnitedGlobalCom, Inc. ("United") subsidiary, based in Amsterdam, The Netherlands. The Commission alleged that in January 1999, Webster engaged in illegal insider trading in the securities of United.
The complaint, filed in the United States District Court for the District of Columbia, alleges that Webster, in connection with his employment at Priority Telecom, learned that Microsoft Corporation would invest $300 million in an initial public offering of United Pan-European Communications ("UPC"), a wholly-owned subsidiary of United, and that Microsoft and UPC would execute a technical services agreement. The Commission asserts that based upon that information, Webster purchased 1,441 shares of United common stock on January 25 prior to United announcing the Microsoft deal at the close of that business day. Webster sold all his United stock on January 27 for illegal trading profits of $15,321.
Without admitting or denying the substantive allegations in the complaint, Webster consented to the entry of a judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder, ordering him to disgorge profits in the amount of $15,321, together with prejudgment interest, and ordering him to pay a civil penalty of $15,321.