SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16640 / July 31, 2000
SEC v. John R. Manion, Rocco J. Anselmo, James L. Rammelt, Ivan Kron, Donald S. Italia and William E. Sklar, Civil Action No. CIV 99-1103 PHX (ROS) (D. Ariz.).
The Securities and Exchange Commission ("Commission") announced today that the United Sates District Court for the District of Arizona entered a Final Judgment of Permanent Injunction and Other Relief ("Final Judgment") against John R. Manion ("Manion") on July 21, 2000. The Final Judgment, entered pursuant to Manion's consent and without admitting or denying the allegations contained in the Commission's Complaint, enjoins Manion from future violations of the antifraud provisions of the federal securities laws. Manion is also required to pay $40,185.91 in disgorgement, prejudgment interest and civil penalties.
The Commission's action was filed on June 22, 1999, in the United States District Court for the District of Arizona, against six defendants for insider trading in the stock of Bio-Dental Technologies Corp. ("Bio-Dental") prior to the June 3, 1996 announcement that Zila, Inc. ("Zila") would acquire Bio-Dental. Named as defendants were Manion, Rocco J. Anselmo ("Anselmo"), James L. Rammelt ("Rammelt"), Ivan Kron ("Kron"), Donald S. Italia ("Italia") and William E. Sklar ("Sklar"). Simultaneous with the filing of the Complaint, five of the defendants, Anselmo, Rammelt, Kron, Italia and Sklar, without admitting or denying the allegations contained in the Complaint, consented to the entry of judgments against them. The judgments permanently enjoined them from future antifraud violations and ordered them to pay a total of $250,286 in disgorgement, prejudgment interest and civil penalties.
The Complaint alleged with regard to Manion that, in connection with Manion's providing a fairness opinion to Zila regarding the acquisition, he obtained the terms of the proposed acquisition and Bio-Dental financial information. Days after providing a favorable opinion to Zila on the Bio-Dental acquisition, Manion purchased 13,000 Bio-Dental shares. The Complaint further alleged that by engaging in insider trading in the securities of Bio-Dental, Manion violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.