Litigation Release No. 21665 / September 24, 2010

SEC v. Michael Jobe and Richard Vlasich, Civil Action No. 4:10-cv-711-Y, United States District Court for the Northern District of Texas (Fort Worth Division)

SEC Files Settled Insider Trading Action Involving XTO Energy Securities

On September 24, 2009, the Securities and Exchange Commission filed an insider trading action in the United States District Court in Fort Worth, Texas against Michael Jobe and Richard Vlasich. The Commission alleges that Jobe and Vlasich engaged in unlawful insider trading in the securities of XTO Energy, Inc.

The Commission's complaint alleges as follows: in early December 2009, Jobe learned from an XTO Energy employee that Exxon Mobil would be acquiring XTO Energy. Despite assurances to the employee that he would not trade on the information and would not to tell anyone else about the deal, Jobe did both. Jobe purchased XTO Energy stock and call options the week before the December 14, 2009, announcement that Exxon Mobil would acquire XTO Energy. He also told Vlasich that XTO Energy would be acquired and advised Vlasich to purchase XTO Energy securities. Vlasich purchased XTO Energy call options prior to the December 14 announcement. As a result of this trading activity in XTO Energy securities, Jobe and Vlasich earned profits of $107,220 and $466,295.90, respectively.

Without admitting or denying the complaint's allegations, Jobe and Vlasich each has agreed to settle the Commission's charges by consenting to the entry of a final judgment. Jobe has agreed to be permanently enjoined from further violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, to pay $107,220 in disgorgement and $1,433.17 in prejudgment interest, and to pay a $100,000 civil penalty. The amount of Jobe's penalty is based on his financial condition. Vlasich has agreed to be permanently enjoined from further violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and to pay $466,295.90 in disgorgement and $6,232.82 in prejudgment interest. Vlasich is not paying a civil penalty based on his agreement to cooperate in the Commission's investigation and any related enforcement action.

See Also: SEC Complaint


Last modified: 9/27/2010