U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17388 / March 1, 2002
SEC v. Avy Amouyal, et al., Civil Action No. 00-Civ-2029, SDNY
SEVEN FOREIGN NATIONALS AGREE TO PAY $1,267,240 TO SETTLE INSIDER TRADING ACTION INVOLVING PURCHASES OF FSA STOCK
The Securities and Exchange Commission announced that it has reached settlements with seven of the eight remaining defendants in this international insider trading case. Avy Amouyal, Andre Amouyal, Pinhas Amouyal, Samuel Chemouny, Bernard Bracha, Frank Naccache and Arnaud Mimran have consented to the entry of final judgments ordering them to disgorge trading profits of $1,267,240 plus prejudgment interest. The settling defendants will be permanently enjoined them from violating the antifraud provision of the Securities Exchange Act of 1934, specifically Section 10(b) and Rule 10b-5 thereunder. The defendants consented to the entry of the judgments without admitting or denying the allegations. The settlements provide that the required payments may be made from defendants' funds that are subject to the asset freeze provisions of the Court's preliminary injunction. Two other defendants settled the action in February of last year. See LR-16900. The case against the remaining defendant, Gerard Pariente, is continuing
The Amended Complaint alleges that in March 2000, the settling defendants purchased the common stock of Financial Security Assurance Holdings, Ltd while in possession of material, nonpublic information concerning a contemplated acquisition of FSA by Dexia Group, that they knew or had reason to know had been communicated to them, directly or indirectly, in breach of fiduciary or similar duties of trust and confidence.
The Commission acknowledges the assistance of the Commission des Operations de Bourse (the French securities authority) and of the Israel Securities Authority.