LITIGATION RELEASE NO. 17340 / January 25, 2002
SECURITIES AND EXCHANGE COMMISSION V. RYAN D. EVANS AND PAUL A. GIANAMORE (United States District Court for the Northern District of Illinois, 02-C-0582).
The Commission announced today the filing of a civil injunctive action in the United States District Court for the Northern District of Illinois against Ryan D. Evans ("Evans") and Paul A. Gianamore ("Gianamore"), both of Chicago, Illinois, for insider trading. The Commission's complaint alleges from in or about December 1999 to in or about August 2000, Gianamore, then a Credit Suisse First Boston Financial Analyst, tipped his friend Evans with material, nonpublic information regarding several publicly traded companies. Evans then traded in the securities of these companies while in possession of this information. Specifically, during the relevant time period, Credit Suisse First Boston's Chicago office ("CSFB Chicago") acted as a financial advisor to one of the parties of at least four merger or acquisition transactions. Through his employment at CSFB Chicago, Gianamore obtained nonpublic information about the mergers and acquisitions in issue before they were publicly announced. He then tipped Evans with the inside information. While in possession of this information, Evans purchased shares in companies shortly before an announcement of the merger or acquisition. In each case, Evans sold his shares shortly after the public announcement of the merger or acquisition, making approximately $243,667.17 from these four trades. The Complaint seeks the entry of an order of permanent injunction, enjoining the defendants from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, as well as disgorgement, plus prejudgment interest and the imposition of a civil penalty.