U.S. Securities & Exchange Commission
LITIGATION Release No. 19100 / February 25, 2005
Securities and Exchange Commission v. Adrian A. Alexander (formerly known as “Adrian Antoniu”), et al., 00 CV 7290 (LTS) (S.D.N.Y.)
SEC SETTLES INSIDER TRADING ACTION AGAINST ADRIAN A. ALEXANDER; ALEXANDER TO PAY OVER $400,000
On February 7, 2005, the U.S. District Court for the Southern District of New York entered a final judgment by consent against Adrian A. Alexander in connection with insider trading in the securities of U.S. Shoe Corporation. The Commission’s Complaint, which was filed in September 2000, alleges that eleven individuals and four entities engaged in insider trading in the securities of U.S. Shoe Corp. and Luxottica S.p.A. before the March 3, 1995 public announcement that Luxottica was commencing a hostile tender offer for U.S. Shoe. The Complaint alleges that Adrian Alexander obtained information about Luxottica’s secret plans to launch a tender offer for U.S. Shoe from Susi Belli, the Manager of Investor and Public Relations for Luxottica, who was then Alexander’s girlfriend and is now his wife. According to the Complaint, Alexander tipped others, including his then business partner Patrick J. Rooney, former Chairman of Rooney Pace & Co., Inc., and Constantine Spyropoulos.
Without admitting or denying the Commission’s allegations, Alexander consented to a final judgment: (1) permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder; (2) ordering him to pay a two-time civil penalty of $420,195 pursuant to Section 21A of the Exchange Act; and (3) ordering him to pay $2.00 in disgorgement. The nominal disgorgement allows the Commission to deposit the civil penalty into a distribution fund under Section 308(a) of the Sarbanes-Oxley Act. In addition, the court approved the parties’ stipulation dismissing Belli, who did not trade in U.S. Shoe securities, from this action.
Earlier in this case, on June 13, 2003, Pavel Hillel consented to the entry of a final judgment: (1) permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder; (2) ordering him to pay a civil penalty of $6,375; and (3) ordering him to pay disgorgement of $6,375 plus prejudgment interest of $5,434.83. Defendants Patrick G. Rooney, Rooney Trading, Inc., Gianna Toffoli, and Penelope Afouxenide were earlier dismissed as defendants in this action. Default judgments have been entered as to defendants Constantine Spyropoulos, Jacobus J. Lam, Westcliff Partners, Inc., Potenza Investments, Inc., and Quintillion B.V. The case is still pending as to David V. Stratman.
For additional information, see Litigation Release No. 16733