SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 16933 / March 15, 2001

SECURITIES AND EXCHANGE COMMISSION v. AARON C. FINCH, United States District Court for the District of Columbia, Civil Action No. 1:01CV00549, Filed March 15, 2001

SEC FILES SETTLED INSIDER TRADING ACTION AGAINST AARON C. FINCH FOR TRADING IN THE SECURITIES OF UNITED PAYORS AND UNITED PROVIDERS, INC.

On March 15, 2001, the Securities and Exchange Commission filed civil fraud charges in the United States District Court for the District of Columbia against Aaron C. Finch, alleging insider trading in the securities of United Payors and United Providers, Inc. ("UPUP") prior to the February 7, 2000 announcement that BCE Emergis, Inc. had agreed to purchase UPUP.

The Commission's complaint alleges that, while Finch was helping UPUP's senior management and board of directors evaluate a potential merger partner, he learned that UPUP might be acquired. According to the complaint, Finch, while in possession of this material, non-public information, purchased a total of 1,090 shares of UPUP common stock on January 18 and January 24, 2000, at prices ranging from $16.75 to $17.75 per share. When the merger was announced on February 7, 2000, the price of UPUP stock increased approximately 25%, from $20.50 to $25.5625 per share. After the merger was announced, Finch sold or tendered all of the shares that he had purchased on January 18 and January 24, 2000, making a profit of $10,089.32.

Finch consented, without admitting or denying the allegations in the complaint, to the entry of a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering him to pay disgorgement of $10,089.32, prejudgment interest of $840.28, and a civil penalty of $10,089.32.

http://www.sec.gov/litigation/litreleases/lr16933.htm