SECURITIES AND EXCHANGE COMMISSION
SEC v. Nick L. Skansi, et al., 98 Civ. 1001, USDC (E.D. La.)
Litigation Release No. 16675 / September 1, 2000
The Securities and Exchange Commission ("Commission") announced that on August 18, 2000, the Honorable Ivan L. R. Lemelle, U.S. District Court Judge for the Eastern District of Louisiana, entered a Final Judgment of Permanent Injunction ("Final Judgment") against Nick L. Skansi and David J. Skansi, both residents of New Orleans, Louisiana. The Final Judgment was entered following a jury trial on January 24-27, 2000, at which Nick L. Skansi and David J. Skansi were found to have engaged in insider trading in the securities of Freeport-McMoRan Oil and Gas Royalty Trust ("FMR") when they purchased FMR securities prior to FMR's announcement in June 1994 of a large oil discovery in the Gulf of Mexico in which FMR held a royalty interest. The jury also found that Chok-Tat Tan, Jody L. Lafont and George S. Pharis were not liable for insider trading when they purchased FMR securities in June 1994.
The Court permanently enjoined Nick L. Skansi and David J. Skansi from further violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. § 78j(b), and Rule 10b-5 promulgated thereunder, 17 C.F.R. § 140.10b-5. The Court also ordered them to pay the disgorgement of illicit profits, prejudgment interest, and civil penalties, in the following amounts: Nick L. Skansi, $53,579.90; David J. Skansi, $31,323.30.
Immediately before trial commenced, the Commission reached a settlement with Nick A. Skansi, who consented to a final judgment that permanently enjoined him from violating the antifraud provisions of the Exchange Act, and ordered him to pay disgorgement of illicit profits, prejudgment interest, and civil penalties of $37,498.51. Previously, the Commission had announced that it had reached settlements with the other defendants in this action, David R. Pfister, Richard G. Pfister, Ty Bartel, Jeffrey J. Jandegian and Randolph R. Blackburn.
The Commission expresses its appreciation to the New York Stock Exchange, Inc. for assistance in the investigation of this matter.