U.S. SECURITIES AND EXCHANGE COMMISSION
Litigaton Release No. 18500 / December 11, 2003
SECURITIES AND EXCHANGE COMMISSION V. LIANNE AND STANLEY GULKIN 03-CV-9813 (JSR) (S.D.N.Y.)
SEC SUES NEW JERSEY COUPLE FOR TRADING ON INSIDE INFORMATION
The Securities and Exchange Commission announced today that it filed a Complaint against Lianne and Stanley Gulkin of West Caldwell, New Jersey, for illegally trading on inside information concerning a then-impending acquisition of Hotjobs.com, Inc. by TMP Worldwide, Inc. The Commission alleged that the Gulkins learned of the merger negotiations and bought the stock before the public announcement in June 2001. After the announcement, the Gulkins sold their stock and gained a total of $16,357 in illicit profits.
The Commission also announced that it has reached a settlement with the Gulkins. The Gulkins have consented, without admitting or denying the allegations of the Commission's Complaint, to the entry of a final judgment that (1) permanently enjoins them from future violations of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, (2) orders them to disgorge $16,357 in profits and to pay prejudgment interest in the sum of $1,963.19, and (3) orders the Gulkins to pay civil penalties amounting to $16,357. The Commission has submitted the proposed final consent judgment to the United States District Court for the Southern District of New York.
The Commission's Complaint alleges as follows:
On or about June 8, 2001, an individual with whom the Gulkins shared a relationship of trust and confidence learned material nonpublic information that Hotjobs.com was involved in confidential negotiations to be acquired by TMP Worldwide. During one or more conversations with that individual between June 8 and June 29, 2001, when TMP Worldwide's acquisition of Hotjobs.com was publicly announced, the Gulkins learned about the takeover plans. Lianne and Stanley Gulkin bought shares of Hotjobs.com on June 18, 2001, and Stanley Gulkin made two more purchases on June 26 and June 29, 2001, prior to the public announcement. In all, the Gulkins bought 5,000 shares of Hotjobs.com while in possession of material, nonpublic information that they misappropriated from the individual, anticipating a price increase in the stock upon the public announcement of the takeover. On June 29, 2001, TMP Worldwide announced its plans to acquire Hotjobs.com, causing the stock price to jump approximately 19 percent. The Gulkins sold their shares and realized a profit of $16,357 in their two accounts. By these actions, the Gulkins violated the antifraud provisions of the Exchange Act.
The Commission acknowledges the assistance of the National Association of Securities Dealers Regulation, Inc.