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U.S. Securities and Exchange Commission

U.S. Securities and Exchange Commission

Litigation Release No. 18160 / May 28, 2003

SEC Sues Four Wisconsin Residents for Insider Trading On Advance Information From Business Week Magazine

Securities and Exchange Commission v. Gregory J. Misfeldt, Gregory L. Tyrer, Jodi L. Knueppel and Mark R. Sonday, 03-CIV-2666 (SJ) (E.D.N.Y.)

The Securities and Exchange Commission announced today that it filed a Complaint against four Wisconsin residents for obtaining advance information from Business Week magazine and trading in securities based on inside information for profits in excess of $1.4 million. Named in the Complaint were Gregory J. Misfeldt of Fort Atkinson and Gregory L. Tyrer of Watertown for illegally trading on misappropriated information concerning more than 160 securities featured in the "Inside Wall Street" column and reaping combined profits of more than $1.4 million. Also named were Jodi L. Knueppel of Lake Mills and Mark R. Sonday of Sun Prairie, who worked at a plant where the magazine was printed and tipped Misfeldt and Tyrer to the securities mentioned in the column before the magazine hit newsstands and subscribers' doorsteps.

The Commission alleged that Misfeldt and Tyrer, both factory workers in Lake Mills, paid Knueppel and Sonday approximately $8,800 each for the information about the securities. Misfeldt was acquainted with Knueppel, and Knueppel enlisted Sonday in the scheme when she took maternity leave from the printing plant. From June 1997 through January 1999, Knueppel, and later, Sonday, telephoned Misfeldt and Tyrer with information from the Business Week column the day before the magazine was circulated. Misfeldt and Tyrer then placed prepublication trades and profited by selling securities after the price moved in response to the magazine's publication.

The Commission also announced that it has reached a settlement with the four. Misfeldt, Tyrer, Knueppel and Sonday have consented, without admitting or denying the allegations of the Commission's Complaint, to the entry of a final judgment that permanently enjoins each from future violations of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Each also has consented to the entry of a final judgment that orders them to disgorge their profits plus prejudgment interest: Misfeldt will disgorge the sum of $346,807.66 in trading profits and $111,595.13 in prejudgment interest; Tyrer will disgorge the sum of $1,063,452.40 in trading profits and $342,195.61 in prejudgment interest; and Knueppel and Sonday each will disgorge $8,800 in tipping fees plus partial prejudgment interest of $1,200. (All payments will be subject to credits for amounts the defendants pay toward restitution ordered in connection with the parallel criminal charges.) The Commission has submitted the proposed final consent judgment to the United States District Court for the Eastern District of New York.

The Commission acknowledges the assistance of the American Stock Exchange and the United States Attorney's Office for the Eastern District of New York.

SEC Complaint in this matter

 

http://www.sec.gov/litigation/litreleases/lr18160.htm


Modified: 05/29/2003