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U.S. Securities and Exchange Commission


Litigation Release No. 20743 / September 25, 2008

U.S. Securities and Exchange Commission v. Jan A. Norelid and Pedro Gil Simoes, Case No. 08-61524-CIV (SDFL) (WPD/RSR)

SEC Charges Two South Florida Men with Insider Trading

The Securities and Exchange Commission today filed an action against Jan A. Norelid, formerly a financial consultant in Fort Lauderdale, Florida, and Pedro Gil Simoes of Lighthouse Point, Florida. The Commission's complaint, filed in the United States District Court for the Southern District of Florida, alleges that Norelid and Simoes purchased stock in Services Acquisition Corporation International from March 7 to March 9, 2006, on the basis of material, nonpublic information concerning the merger of Jamba Juice, Inc., and Services Acquisition, a special purpose acquisition company (SPAC), headquartered in Fort Lauderdale, Florida.

According to the Commission's complaint, in February 2006, within the scope of his duties as a financial consultant to Services Acquisition, Norelid learned that Services Acquisition was intending to acquire Jamba Juice. Norelid recently had been assigned by the consulting company for which he worked to assist in due diligence related to the merger. Later that same month, Norelid tipped a relative, Pedro Gil Simoes, disclosing to him that Services Acquisition intended to merge with Jamba Juice.

The Commission's complaint further alleges that prior to the announcement of the merger agreement on March 13, 2006, both Norelid and Simoes purchased Services Acquisition stock while in possession of material, non-public information. Following the announcement of the merger agreement, Services Acquisition's stock jumped more than 34% over its previous day closing price. On March 22 and March 26, 2006, respectively, Norelid and Simoes sold their Services Acquisition stock, garnering illegal profits.

Norelid and Simoes have consented to the entry of a final judgment that permanently enjoins them from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Norelid has agreed to pay disgorgement of $5,102 and prejudgment interest of $906, plus a penalty of $8,865 based on his and Simoes' illegal trading profits. Simoes has agreed to pay $3,763 in disgorgement and prejudgment interest of $646, plus a $3,763 penalty. As part of the settlement, which is subject to court approval, Norelid and Simoes neither admit nor deny the allegations in the complaint.

The Commission notes the substantial assistance and cooperation from the Financial Industry Regulatory Authority (FINRA).

SEC Complaint in this matter



Modified: 09/25/2008