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U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 16691 / September 7, 2000

SECURITIES AND EXCHANGE COMMISSION v. DAVID W. HALL, et al, Civil Action No. 98-10325AAH (C.D. Cal.) (filed December 22, 1998)

The Commission announced today that David W. Hall, William A. Hall, William Y. Hall and Alan Salem agreed to settle charges alleging insider trading in the securities of Norand Corporation. On December 22, 1998, the Commission filed a complaint in the United States District Court for the Central District of California alleging that Robert Neprud, an assistant controller at Western Atlas, Inc., misappropriated confidential client information by tipping David W. Hall about Western Atlas's upcoming tender offer for Norand prior to the official announcement on January 22, 1997. The complaint also alleged that David Hall knew that Neprud was an executive at Western Atlas, the acquiring company, and knew that Neprud's disclosure violated duties he owed to Norand. The complaint alleges that David Hall purchased Norand stock and made $48,000 in profits. The complaint further alleges that David Hall tipped his father, his brother, his cousin, Thomas Wagner, and Wagner's father-in-law, Alan Salem. On January 13 or 14, 1997, David Hall shared with both his father, William A. Hall, and his brother, William Y. Hall, neither of whom had ever bought stock before, the information he learned from Neprud. William A. Hall and William Y. Hall that the information he had acquired from David Hall was material and nonpublic, and that it had been conveyed to David Hall in breach of a duty of trust and confidence.

According to the complaint, William A. Hall and William Y. Hall made total profits of $173,283 and $15,259, respectively, and Wagner made $7,937 in trading profits. The complaint also alleged that Alan Salem purchased Norand and Western Atlas securities, making $77,875 in profits, and caused four other individuals to trade, for total profits of approximately $249,000.

David Hall consented, without admitting or denying the Commission's allegations, to a final judgment entered on February 1, 2000: (1) permanently enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3 thereunder; and (2) ordering Hall to pay disgorgement and prejudgment interest of $60,000.

Salem consented, without admitting or denying the Commission's allegations, to a final judgment entered on June 1, 2000: (1) permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder; (2) ordering him to pay $191,914.42 in disgorgement and prejudgment interest; and (3) ordering him to pay a $121,525 civil penalty pursuant to Section 21A of the Exchange Act.

William A. Hall consented, without admitting or denying the Commission's allegations, to a final judgment entered on August 25, 2000: (1) permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder; and (2) ordering him to pay $30,000 in disgorgement and prejudgment interest, with additional amounts in disgorgement and penalty not assessed based on his inability to pay.

William Y. Hall consented, without admitting or denying the Commission's allegations, to a final judgment entered on July 3, 2000: (1) permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder; and (2) ordering him to pay $19,528.39 in disgorgement and prejudgment interest, with additional amounts in disgorgement and penalty not assessed based on his inability to pay.

In addition, on March 16, 2000, the Court granted the Commission's motion to withdraw without prejudice its action against Thomas Wagner. On December 22, 1998, simultaneous with the filing of the Commission's complaint, Neprud consented, without admitting or denying the Commission's allegations, to a final judgment permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and ordering him to pay a $60,000 civil penalty.

[See also Litigation Release Nos. 16009 and 16105]

http://www.sec.gov/litigation/litreleases/lr16691.htm


Modified:09/08/2000