U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19162 / March 31, 2005
Securities and Exchange Commission v. Anthony C. Sudol III, Michael G. Sudol and Richard J. Sudol, Civil Action No. C-05-1299 (N.D. Cal.)
SEC CHARGES FORMER CISCO EMPLOYEE AND HIS TWO BROTHERS WITH INSIDER TRADING
The United States Securities and Exchange Commission ("Commission") announced today that it has filed a securities fraud lawsuit in the United States District Court for the Northern District of California against three brothers, Anthony C. Sudol III, Michael G. Sudol and Richard J. Sudol. The Commission's complaint alleges that Anthony Sudol, a former employee of Cisco Systems, Inc., repeatedly passed material, non-public information that he learned during the course of his employment to his brothers who then traded on that information prior to its public release.
According to the Commission's complaint Anthony Sudol learned of Cisco's acquisition plans by virtue of positions he held at Cisco where he assisted with the integration of newly acquired businesses into Cisco's physical space and operations. After learning of five impending acquisitions between 1999 and 2003, Anthony Sudol provided that information to one or both of his brothers. Acting on his brother's tips, Michael Sudol purchased the stock of five publicly traded companies just prior to acquisition announcements by Cisco and Richard Sudol traded in the stock of four. In total, the brothers realized profits of more than $400,000.
The Commission's action charges the three brothers with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctive relief, disgorgement, and civil monetary penalties.
The Commission acknowledges the assistance of the NASD in this matter.