U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Washington, D.C.

LITIGATION RELEASE NO. 17168 / October 2, 2001

SEC v. Alan E. Wesa, 01 Civ. Action No. 2613 (October 1, 2001)


The U.S. Securities and Exchange Commission yesterday filed an injunctive action in the United States District Court for the Northern District of Georgia (Atlanta Division) against Alan E. Wesa in SEC v. Alan E. Wesa, 01 Civ Action No. 2613. The complaint alleges that in May 1997, Alan E. Wesa engaged in insider trading in the securities of Inbrand Corporation. At the time of the trading, Wesa was an Inbrand employee.

The complaint alleges during 1996 and 1997, Alan E. Wesa was the Manager of Financial Planning and Analysis for Inbrand Corporation, then a Georgia corporation engaged in the business of manufacturing and selling adult incontinence products. In his capacity as Manager of Financial Planning and Analysis, Wesa reported to Inbrand's Chief Financial Officer, James Johnson.

On Friday, May 9, 1997 at approximately 5:00 p.m., Johnson informed Wesa that Tyco International Ltd. would acquire Inbrand in a transaction that would be publicly announced the following week. Johnson also told Wesa that as a result of the acquisition he would be happy to be an Inbrand shareholder.

On Monday morning, May 12, 1997, while in possession of the aforementioned material non-public information, Wesa made two separate purchases of Inbrand common stock totaling 1,370 shares. As a result of this trading, Wesa made profits of $14,556.

According to the Commission's complaint, through this conduct, Wesa violated the anti-fraud provisions of the federal securities laws, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks a permanent injunction against future violations of this provision, disgorgement and civil penalties.


Modified: 10/03/2001