U.S. Securities and Exchange Commission
Litigation Release No. 18074 / April 7, 2003
United States v. John J. Cassese, 03 CR 302 (RWS) (S.D.N.Y)
Criminal Insider Trading Charges Brought against Chairman and President of Computer Horizons Corp.
The Commission announced today that, on March 13, 2003, a grand jury impaneled by the United States Attorney's Office for the Southern District of New York indicted John J. Cassese on two criminal charges of insider trading. Cassese was the chairman and president of Computer Horizons Corp. The indictment alleges that Cassese violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder by engaging in insider trading in the stock of Data Processing Resources Corporation ("DPRC") while in possession of material, nonpublic information about a tender offer for DPRC common stock by Compuware Corporation. Computer Horizons (based in New Jersey), DPRC (based in Orange County, California) and Compuware (based in Michigan) each engaged in the business of providing temporary staffing of computer and information technology personnel. According to the Indictment, on June 21, 1999, Cassese learned through his business relationship with Compuware that Compuware would be making a tender offer to acquire DPRC. The Indictment further alleges that the next day, while in possession of this material, nonpublic information, Cassese purchased 15,000 shares of DPRC common stock and subsequently sold these shares at a profit of approximately $150,000.
In an earlier proceeding brought by the Commission, Cassese, without admitting or denying the allegations in the Commission's complaint, consented to the entry of a final judgment that permanently enjoined him from future violations of Section 14(e) of the Exchange Act and Rule 14e-3 thereunder. Cassese also agreed to disgorge $150,937.50 in ill-gotten gains, plus prejudgment interest, and to pay a civil penalty of $150,937.50. See SEC v. John J. Cassese, Civil Action No. 02-01605 FMC (AJWx) (C.D. Cal.) (Litigation Release No. 17378).