U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19075 / February 10, 2005
SECURITIES AND EXCHANGE COMMISSION v. FRANK R.V. LOOMANS, DEFENDANT AND LUC F. LOOMANS, RELIEF DEFENDANT, Civil Action File No. 1:05-CV-0400 (N.D. Ga.).
SEC CHARGES FRANK R.V. LOOMANS WITH INSIDER TRADING IN THE SECURITIES OF COX COMMUNICATIONS, INC. AND CONCURRENT COMPUTER CORPORATION
The Securities and Exchange Commission (the "Commission") announced that on February 10, 2005, it filed a complaint in the United States District Court for the Northern District of Georgia against Frank R.V. Loomans ("F. Loomans") as defendant, and Luc F. Loomans ("L. Loomans"), as a relief defendant. The complaint alleges that between July 2000 and July 2001, F. Loomans, who was then a manager of investor relations for Cox Communications, Inc. ("Cox"), engaged in insider trading in options for securities of Cox and of Concurrent Computer Corporation ("Concurrent"), which had a business relationship with Cox. It further alleges that to carry out the scheme, F. Loomans placed orders to trade in a brokerage account in the name of his father, Luc F. Loomans ("L. Loomans"), via the Internet using a computer at Cox and by telephone. At the time of the conduct alleged in the complaint, F. Loomans was a resident of Atlanta, Georgia, while his father resided near Brussels, Belgium.
The Commission's complaint alleges that F. Loomans was, by virtue of his then and past positions at Cox, intimately involved in the preparation of Cox quarterly earnings releases, from which he obtained highly sensitive and detailed nonpublic information after the end of each quarter, and through the date and time of each quarterly earnings release. It further alleges that F. Loomans received material nonpublic information regarding publicly traded companies with which Cox had proposed business transactions such as investments, acquisitions, mergers and significant vendor relationships. While in possession of material nonpublic information, the Complaint alleges that F. Loomans conducted securities trades in L. Loomans' brokerage account which included various purchases and sales of Cox and Concurrent options. As a result, he illegally gained at least $285,505. After F. Loomans' final sale, L. Loomans initiated instructions which caused virtually all of the funds in his brokerage account to be transferred outside of the United States, and was therefore enriched by that amount.
The complaint alleges that by his conduct, F. Loomans violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that L. Loomans was unjustly enriched by the amount in his brokerage account arising from the sales. The Commission seeks a permanent injunction, accounting, disgorgement, prejudgment interest, civil penalties and an officer and director bar against F. Loomans, and further seeks disgorgement and prejudgment interest from L. Loomans.