The Securities and Exchange Commission today announced a settled action against James R. Jensen, of Englewood, Colorado, for engaging in insider trading in the securities of Crown Resources, Corp. ("Crown"). The Commission's complaint, filed in the United States District Court for the District of Colorado, alleges that while working as a financial consultant for Crown, Jensen obtained material nonpublic information that he used to earn illegal trading profits.

The Commission alleges that on October 7, 2003, Crown hired Jensen to work as a financial consultant. On that same day, Jensen learned that Crown was going to be acquired and that a public announcement was imminent. Based on that nonpublic information, Jensen began buying Crown stock. Following the close of the financial markets on October 8, Crown announced it had been acquired. As a result, on October 9 the price of Crown stock increased. In the complaint, the Commission alleges that Jensen obtained $15,265 in illegal profits from his trading in Crown stock. The Commission seeks against Jensen a permanent injunction, disgorgement of his illegal trading profits and prejudgment interest, and a civil money penalty.

Simultaneously with the filing of the Commission's action, Jensen agreed, without admitting or denying the allegations in the complaint, to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, Jensen consented to pay disgorgement of $15,265 plus prejudgment interest, and to pay a one-time civil penalty on his profits of $15,265.

SEC Complaint in this matter