U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16853 / January 3, 2001
Securities and Exchange Commission v. Steven Eichenholz, 01 Civ. 0034 (S.D.N.Y.)
SEC CHARGES PERSON IN INSIDER TRADING SCHEME
The Securities and Exchange Commission today filed a Complaint in the United States District Court for the Southern District of New York against Steven Eichenholz ("Eichenholz") of North Babylon, New York. In the Complaint, the Commission alleged that Eichenholz received tips containing material, nonpublic information concerning the securities of four companies from Jeffrey Streich. Streich had received these tips from Marisa Baridis, a former compliance employee at two Wall Street investment firms, who had access to confidential information concerning the firms' clients. Eichenholz, trading in securities of two of the companies, realized illegal profits of $6,825. He also recommended the securities to a second person, who traded in three of the securities and realized $10,663 in profits.
Simultaneous with the filing of the Complaint, Eichenholz consented, without admitting or denying the allegations in the Complaint, to the entry of a Final Judgment enjoining him from future violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and requiring him to disgorge illegal trading profits of $17,488, plus prejudgment interest. Based on his demonstrated inability to pay, disgorgement and a civil penalty were waived.
For information about related matters, see Lit. Rel. No. 15741 (May 15, 1998); Lit. Rel. No. 15990 (Dec. 3, 1998); Securities Exchange Act Rel. No. 40787 (Dec. 14, 1998); Securities Exchange Act Rel. No. 40788 (Dec. 14, 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); Lit. Rel. No. 16227 (Aug. 2, 1999); Lit. Rel. No. 16326 (Oct. 4, 1999); Lit. Rel. No. 16458 (Feb. 29, 2000); and Lit. Rel. No. 16746 (Oct. 3, 2000).
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.