U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19731 / June 19, 2006

SEC v. Ricardo Cavallero, et al., 06 Civ. 3282 (N.D. Illinois) (June 15, 2006)

Court Freezes More than $1 Million of Assets Linked to Suspicious Trades in Maverick Tube Corp. Call Options and Common Stock Prior to Proposed Takeover Announcement

In an emergency federal court action filed on June 15, 2006, the Securities and Exchange Commission obtained a court order freezing approximately $1.1 million in assets of Defendants Ricardo Cavallero, Elena H De Cavallero, Juan Carlos Peralta, Sebastian Kohan Miller, and Silvina Garcia Tobar De Miller who reside in Buenos Aires, Argentina.

In its Complaint, the Commission alleges that the Defendants engaged in insider trading in call options and common stock of Maverick Tube Corp. ("Maverick Tube") just prior to a June 12, 2006 announcement that Maverick Tube was to be acquired by Tenaris SA, a company with significant operations in Argentina. The Commission further alleges that while in possession of material, nonpublic information concerning the announcement of the acquisition, from at least May 12 through June 13, 2006, the defendants purchased a total of 1120 call options for Maverick Tube's stock. Moreover, according to the Commission, the Defendants also purchased at least 7,100 shares of Maverick Tube common stock shortly before the Announcement. The Commission alleges that in advance of the announcement, the Defendants engaged in widespread unlawful activity and were in a position to reap over $1.1 million.

The Court's Temporary Restraining Order prohibits the removal of the proceeds from the illegal transactions from the Defendants' U.S. brokerage accounts.

In the pending lawsuit, the Commission alleges that the Defendants engaged in illegal insider trading in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Complaint seeks permanent injunctive relief, disgorgement of all illegal profits, and the imposition of civil monetary penalties.

The Commission acknowledges the assistance of the Chicago Board Options Exchange and the New York Stock Exchange in this matter.

Contact Persons: Robert J. Burson, Senior Associate Regional Director (312-353-7428)

SEC Complaint in this matter
Temporary Restraining Order