U.S. Securities and Exchange Commission
Litigation Release No. 18156 / May 23, 2003
United States Securities and Exchange Commission v. Michael T. Mulligan, 03 CV 3231 RHK/AJB (U.S. D.C. Minn. 2003).
Commission Files Complaint Against Michael Mulligan In Alleged Insider Trading Scheme
Mulligan Consents To Permanent Injunction
On May 21, 2003, the Commission filed and simultaneously settled an injunctive action in the United States District Court for the District of Minnesota against Michael T. Mulligan ("Mulligan"). The action was based on Mulligan's conviction of one count of securities fraud in violation of 15 U.S.C. § 78j(b) and 17 C.F.R. §240.10b-5. Mulligan, in his criminal plea, agreed to pay fines and restitution totaling $1,250,000.
The Commission complaint alleges that Mulligan engaged in insider trading by trading in the securities of Cyberoptics Corporation while in possession of material, nonpublic information provided by George Kline then a director of Cyberoptics. This activity constituted violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder.
Mulligan consented, without admitting or denying the allegations in the complaint, to the entry of an order of permanent injunction enjoining him from violations of Section 10(b) of the Exchange Act and Rule 10b-5.
The complaint notes that the Commission did not seek disgorgement and penalties because the plea agreement reached between Mulligan and the U.S. Attorney's office for the District of Minnesota provided for the payment of $1.25 million.
The Commission would like to thank the United States Attorney for the District of Minnesota for its assistance and cooperation in this matter.