SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17190 / October 16, 2001
SECURITIES AND EXCHANGE COMMISSION v. BRENDAN J. STERNE, KENT ALEXANDER WALKER, and RYAN CAMPBELL DOERSAM, Civil Action No. 01 CV 8729 (S.D.N.Y.) (filed September 27, 2001)
FORMER INVESTMENT BANK EMPLOYEE SUSPENDED FROM THE SECURITIES INDUSTRY
On October 10, 2001, the U.S. District Court for the Southern District of New York entered a final judgment against Ryan Campbell Doersam, a former employee of a Canadian investment bank, based upon charges of insider trading. In its complaint filed on September 27, 2001, the Commission alleged that Michael Petrescu-Comnene, who then worked as an analyst in the investment banking division of Salomon Smith Barney, Inc., tipped Doersam prior to the March 21, 2000 public announcement that Travelers Property Casualty Corp. ("Travelers") would be acquired by Citigroup in a cash tender offer worth $2.4 billion. Based on this tip, and while in possession of material, nonpublic information concerning the Travelers acquisition, Doersam purchased 15 Travelers call options on the morning of the announcement. When the merger was announced later that day, Travelers stock price increased approximately 21 percent. Two days later, Doersam sold his Travelers options, resulting in profits of $7,875.
Doersam, without admitting or denying the allegations of the Commission's complaint, consented to the entry of the final judgment, which permanently enjoins him from violating the antifraud provisions contained within Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3 promulgated thereunder. The Court also ordered Doersam to pay $8,574.89, representing disgorgement of illegal profits and prejudgment interest. However, payment of this amount was waived and a civil penalty was not assessed against Doersam, based upon his demonstrated inability to pay.
Today, based on the entry of the Court's injunction, the Commission also instituted settled administrative proceedings against Doersam pursuant to Section 15(b)(6) of the Exchange Act. Without admitting or denying the Commission's findings, Doersam consented to the entry of the Commission's Order, which suspends him from associating with any broker or dealer for a period of 12 months. In the Matter of Ryan Campbell Doersam, Administrative Proceeding File No. 3-10622; Securities Exchange Act of 1934 Release No. 44939.