SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15497 / September 17, 1997 SECURITIES AND EXCHANGE COMMISSION v. PAUL H. BORG, Civil Action No. Civ 97-1914 PHX(EHC) (D. Arizona, filed September 16, 1997) The Securities and Exchange Commission ("Commission") today announced the filing of a complaint against Paul H. Borg ("Borg"), of Mesa, Arizona, a former semiconductor product sector sourcing buyer for Motorola, Inc., charging him with insider trading. Simultaneously with the filing of the Commission's complaint, Borg consented to the entry of an order of permanent injunction from further violations of the antifraud provisions of the federal securities laws. Borg also agreed to pay disgorgement of $5,250 of illegal trading profits, plus prejudgment interest, and to pay a civil monetary penalty of $5,250. The complaint alleged that Borg traded in the securities of Ibis Technology Corporation ("Ibis"), a Danvers, Massachusetts-based company, in advance of an October 2, 1995 public announcement that Ibis had entered into a manufacturing agreement with Motorola. According to the complaint, on September 20 and 29, 1995, after having assisted in negotiating the terms of the agreement for his employer, Motorola, Borg illegally purchased a total of 2,000 shares of Ibis common stock. After the public announcement, on October 3, 1995, the price of Ibis' common stock increased nearly 50%, to $7-5/8 per share, on heavy trading volume. As a result, the complaint alleged, Borg realized illegal trading profits of $5,250. Borg neither admitted nor denied the allegations in the complaint. The complaint, which was filed in the United States District Court for the District of Arizona, alleged that Borg violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. ======END OF PAGE 1======