U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21376 / January 12, 2010
Securities and Exchange Commission v. Phillip Macdonald, Martin Gollan, and Michael Goodman, Civil Action No. 09-CV-5352 (HB) (S.D.N.Y. filed June 10, 2009)
SEC Settles Insider Trading Charges Against Canadian Businessman
The U.S. Securities and Exchange Commission ("Commission") today announced that, on January 11, 2010, the U.S. District Court for the Southern District of New York entered a settled Final Judgment as to Defendant Martin Gollan, in the previous filed Commission insider trading action, Securities and Exchange Commission v. Phillip Macdonald, Martin Gollan, and Michael Goodman, Civil Action No. 09-CV-5352 (HB) (S.D.N.Y. filed June 10, 2009). The Commission's Complaint in that action alleges that Gollan, a Canadian scrap metal dealer, engaged in insider trading in the securities of certain companies ahead of public announcements of business combinations. The Complaint alleges that between January and June 2005, the wife of Gollan's co-defendant, Michael Goodman, learned the identities of those companies in the course of her employment as an administrative assistant with Merrill Lynch Canada, Inc. Goodman's wife sometimes mentioned the information to Goodman, expecting that he would keep it confidential. Goodman instead misappropriated the information by, among other things, recommending stocks to his business associate, Gollan. On the basis of the information, Gollan then purchased securities ahead of business combination announcements. (Goodman previously consented to the entry of a Final Judgment against him in the Commission's action.)
Gollan consented to the entry of the Final Judgment against him, without admitting or denying the allegations in the Commission's Complaint, except as to jurisdiction. The Final Judgment against Gollan permanently enjoins him from further violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b 5 thereunder and orders him to pay disgorgement of $91,976, together with prejudgment interest thereon in the amount of $22,471.70.
See also Litigation Release No. 21079 (June 10, 2009).