U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16746 / October 3, 2000
Securities and Exchange Commission v. Marc B. Nogid, 00 Civ. 7460 (S.D.N.Y.)
SEC CHARGES NINTH PERSON IN INSIDER TRADING SCHEME
The Commission today filed a Complaint in the United States District Court for the Southern District of New York against Marc B. Nogid of New York, New York. The Complaint alleges the following: Nogid received tips containing material, nonpublic information concerning the securities of four companies from Jeffrey Streich, who had received them from Marisa Baridis, a former compliance employee at two Wall Street investment firms, who had access to confidential information concerning the firms' clients. Nogid recommended the securities to others. Based on the tips, Nogid and the others collectively traded in four securities and realized illegal profits of $162,661. Nogid served as a broker for accounts of Streich and an entity Streich controlled. In the course of trading in these accounts, Streich, with Nogid's knowledge and assistance, engaged in a free-riding scheme pursuant to which Streich purchased stock without paying for it and without enough cash to buy it on margin.
Nogid consented, without admitting or denying the allegations in the Complaint, to the entry of a Final Judgment enjoining him from future violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and requiring him to disgorge illegal trading profits of $162,661, plus prejudgment interest. Based on his demonstrated inability to pay, disgorgement and a civil penalty were waived. Nogid also consented to the entry of a Commission Order barring him from association with any broker or dealer. The Order, to be issued shortly, will be based upon the Complaint and Final Judgment.
For information about related matters, see Lit. Rel. No. 15741 (May 15, 1998); Lit. Rel. No. 15990 (Dec. 3, 1998); Securities Exchange Act Rel. No. 40787 (Dec. 14, 1998); Securities Exchange Act Rel. No. 40788 (Dec. 14, 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); Lit. Rel. No. 16227 (Aug. 2, 1999); Lit. Rel. No. 16326 (Oct. 4, 1999); and Lit. Rel. No. 16458 (Feb. 29, 2000).
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.