U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22734 / June 27, 2013
Securities and Exchange Commission v. Matthew C. Devlin, et al., Civil Action No. 08-CV-11001 (S.D.N.Y.) (LGS)
The Securities and Exchange Commission today announced that on June 24, 2013, the Honorable Lorna G. Schofield, United States District Judge for the Southern District of New York, entered an order dismissing all claims in this action against relief defendants Maria T. Checa and Checa International, Inc. Previously, on June 19, 2013, the District Court entered an order dismissing all claims in this action against relief defendant Lee H. Corbin. The District Court's orders were based upon stipulations of dismissal with the relief defendants who no longer possess any illegal gains from a long-running insider trading scheme orchestrated by Jamil Bouchareb and Daniel Corbin.
The Commission's case alleged that Bouchareb and Corbin traded in 11 to 12 corporate transactions based on inside information obtained from Matthew Devlin, a former Lehman Brothers, Inc. representative, who had misappropriated the confidential information from his wife, a partner in a public relations firm working on the deals. Because the inside information was valuable, Bouchareb and Corbin referred to Devlin's wife as the "golden goose." In their prior settlements with the Commission, Bouchareb and Corbin agreed to pay a total of over $1.2 million in disgorgement and prejudgment interest. Bouchareb's disgorgement included trading profits generated by relief defendants Checa and Checa International, Inc. Corbin's disgorgement included trading profits generated by relief defendant Lee Corbin. Entry of the District Court's orders concludes the Commission's action.
For further information, please see Litigation Release Nos. 20831 (December 18, 2008), 21854 (February 14, 2011) and 22700 (May 15, 2013).