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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.

LITIGATION RELEASE NO. 17107 / August 21, 2001

Securities and Exchange Commission v. Vincent Napolitano, 01 Civ. 7798 (S.D.N.Y.)

Securities and Exchange Commission v. Robert Breed, 01 Civ. 7799 (S.D.N.Y.)

SEC CHARGES TWO PEOPLE IN INSIDER TRADING SCHEME

The Commission today filed Complaints in the United States District Court for the Southern District of New York against Vincent Napolitano ("Napolitano") of New York, New York and Robert Breed ("Breed") of Bonita Springs, Florida. The Complaint against Napolitano alleges the following: Napolitano received tips containing material, nonpublic information concerning the securities of eight companies from Jeffrey Streich, who had received them from Marisa Baridis, a former compliance employee at two Wall Street investment firms, who had access to confidential information concerning the firms' clients. Napolitano purchased securities while in possession of material, nonpublic information that he knew was obtained in breach of a fiduciary duty that Baridis owed her employer. Napolitano also established joint accounts with Streich in which they traded upon inside information and split the profits. Further, Napolitano recommended certain of the securities to several other persons. Napolitano and his tippees collectively traded in the eight securities and realized total profits of approximately $400,000. In a related criminal case, Napolitano was convicted of state charges in New York Supreme Court relating to his insider trading.

The Complaint against Breed alleges the following: Breed received tips containing material, nonpublic information concerning the securities of eight companies from Jeffrey Streich, who had received them from Marisa Baridis, a former compliance employee at two Wall Street investment firms, who had access to confidential information concerning the firms' clients. Breed purchased securities while in possession of material, nonpublic information that he knew was obtained in breach of a fiduciary duty that Baridis owed her employer. Further, Breed tipped, or directed the trading of, his friends and family in certain of the securities. Breed and his family and friends collectively traded in the seven securities and realized total profits of approximately $200,000. In a related criminal case, Breed pled guilty to state charges in New York Supreme Court relating to his insider trading.

The complaint against Napolitano seeks a permanent injunction against violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3 thereunder. The complaint further seeks disgorgement of illegal profits, pre-judgment interest, and civil monetary penalties. The complaint against Breed seeks a permanent injunction against violating Sections 7(c), 10(b) and 14(e) of the Exchange Act, and Regulation T and Rules 10b-5 and 14e-3 thereunder. The complaint further seeks disgorgement of illegal profits, pre-judgment interest, and civil monetary penalties.

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); Lit. Rel. No. 16746 (Oct. 3, 2000); and Lit. Rel. No. 16853 (January 3, 2001).

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.

http://www.sec.gov/litigation/litreleases/lr17107.htm


Modified: 03/24/2005