U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16850 / January 3, 2001
Securities and Exchange Commission v. Colleen M. Millsap,
Civil Action No. 1:01CV00002 (D.D.C.)
The Commission today filed insider trading charges against Colleen M. Millsap, a resident of Virginia and former chief financial officer of the Alexandria, Virginia-based digitalNATION Inc. The Commission alleged that from March through July 1999, Millsap engaged in illegal insider trading in the securities of Verio, Inc. prior to Verio&ACUTEs acquisition of digitalNATION on July 13, 1999.
The complaint, filed in the United States District Court for the District of Columbia, alleges that Millsap, in connection with her employment at digitalNATION, learned of Verio´ ongoing negotiations for the acquisition of digitalNATION that was publicly announced on July 13, 1999. The Commission asserts that based upon that information, Millsap purchased 500 shares of Verio common stock on March 19, 1999, and 600 shares on July 7, 1999. Millsap´ family members made three additional purchases, totaling 925 shares of Verio stock, on July 7 and July 12, 1999.
Without admitting or denying the substantive allegations in the complaint, Millsap consented to the entry of a judgment permanently enjoining her from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, ordering her to disgorge profits in the amount of $25,776.56, together with prejudgment interest of $2,534.55, and ordering her to pay a civil penalty of $25,776.56.