U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16227 / August 2, 1999
Securities and Exchange Commission v. Jennifer D'Antoni, 99 Civ. 6106 (JSM) (S.D.N.Y.)
SEC CHARGES SIXTH PERSON IN INSIDER TRADING SCHEME
The Securities and Exchange Commission today filed a complaint in the United States District Court for the Southern District of New York against Jennifer D'Antoni of New York, New York. The Complaint alleges that D'Antoni engaged in insider trading in advance of public announcements concerning the securities of six publicly traded companies: Owen Healthcare, Inc.; Coram Healthcare, Inc.; Pacific Rehabilitation & Sports Medicine, Inc.; Capsure Holdings Corp.; American Medical Response, Inc.; and Starsight Telecast, Inc. According to the Complaint, during a four month period, D'Antoni, who was a registered representative at the time, received material nonpublic information concerning the securities of these companies from Jeffrey Streich, her ex-boyfriend. Streich had himself received the tips from Marisa Baridis, a former employee in the compliance departments of two Wall Street investment firms who had access to confidential information concerning the firms' clients. The Complaint alleges that D'Antoni realized trading profits of $124,025 based on the tips from Streich, and that she recommended three of these securities to a co-worker who realized profits of $6,250.
Simultaneous with the filing of the Complaint, D'Antoni consented, without admitting or denying the allegations in the Complaint, to the entry of a Final Judgment enjoining her from future violations of Section 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and requiring her to disgorge illegal trading profits of $130,275, plus prejudgment interest. Based on her demonstrated inability to pay more, all but $25,000 of the disgorgement amount was waived. As an additional part of the settlement, D'Antoni has consented to the entry of a Commission order barring her from association with any broker or dealer. In a related criminal case, D'Antoni earlier pleaded guilty in New York Supreme Court to state charges relating to her insider trading and was sentenced to 250 hours of community service work and fined $5,000.
For information about related matters, see Lit. Rel. No. 15741 (May 15, 1998); Securities Exchange Act Rel. No. 40787 (Dec. 14, 1998); Securities Exchange Act Rel. No. 40788 (Dec. 14, 1998); Lit Rel. No. 15990 (Dec. 3, 1998); Lit Rel. No. 16090 (Mar. 18, 1999); Securities Exchange Act Rel. No. 41182 (Mar. 18, 1999); Securities Exchange Act Rel. No. 41220 (Mar. 29, 1999).
The Commission acknowledges the assistance provided by the U.S. Attorney for the Southern District of New York, the District Attorney for New York County, the New York Stock Exchange, the American Stock Exchange, and the Pacific Exchange, Inc.
The Commission's investigation in this matter is continuing.