SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16761 / October 10, 2000
SECURITIES AND EXCHANGE COMMISSION V. ROBERT HUNTER, EDWARD R. DUDLIK, JR., THOMAS F. GOLDMAN, W. KENNETH GREENWOOD, JOSEPH MCKEON, KATHY NAUMANN, BENJAMIN PAUL, THOMAS B. PILEGGI, JOHN ROSE, JOHN ROSE, JR., RAYMOND F. WHITE, AND H. CONSTANCE NEFF AS RELIEF DEFENDANT, CIVIL ACTION NO. 97-CV-4621 (E.D. Pa.) (Bartle, J.)
The Securities and Exchange Commission announced that on July 19, 2000 the United States District Court for the Eastern District of Pennsylvania entered a final consent judgment of permanent injunction and other relief against defendant Thomas B. Pileggi in this insider trading case. According to the Commission's complaint, filed on July 16, 1997, Pileggi, who was a director of the Cheltenham Bank, a wholly owned subsidiary of Independence Bancorp, Inc. ("INBC"), purchased INBC stock after learning that CoreStates Financial Corp. had made a proposal to acquire INBC. Pileggi made $228,800 in illegal profits from his trading prior to the public announcement of the acquisition proposal.
Without admitting or denying the allegations in the complaint, Pileggi consented to the entry of a final judgment of permanent injunction against future violations of the antifraud provisions of the federal securities laws, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Pileggi agreed to disgorge his trading profits, plus prejudgment interest in the amount of $161,964.92. He also agreed to pay a penalty of $228,800.
Pileggi was subsequently convicted of securities and wire fraud in connection with his INBC trades after a jury trial.