U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20331 / October 12, 2007
Securities and Exchange Commission v. Daniel Joseph McKay, Civil Action File No. 5:07-CV-378-H (EDNC)
Final Judgment Entered Against Spouse of Former Officer of Triangle Pharmaceuticals, Inc. for Illegal Insider Trading
The Securities and Exchange Commission today announced the Honorable Malcolm J. Howard, United States District Judge for the Eastern District of North Carolina, entered a Final Judgment As To Defendant Daniel Joseph McKay of Creedmoor, North Carolina, enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court ordered disgorgement against McKay of $11, 416 plus prejudgment interest of $1,043. McKay was also ordered to pay a civil penalty of $11,416. McKay consented to the entry of the judgment without admitting or denying the allegations of the Commission's Complaint.
The Commission's complaint, filed on September 27, 2007, alleged that between October 2002 and November 2002, McKay misappropriated from his spouse, who was then an executive vice president of Triangle, the material nonpublic information that Triangle had received an acquisition offer from another company. The Commission's complaint further alleged that after misappropriating this information, McKay purchased Triangle stock and tipped two of his siblings, who also purchased Triangle stock. As a result of this illegal conduct, McKay and his siblings obtained illicit profits and gains in the amount of $11,416.
See also: L.R. 20314 (September 28, 2007).