U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17347 / January 30, 2002
SECURITIES AND EXCHANGE COMMISSION v. THOMAS T. JOHNSON and MICHAEL C. DICKMAN, Civil Action No. 02 CV 00184 L (RBB) (S.D. Cal.)
The United States Securities and Exchange Commission announced today that it filed a complaint in Federal Court in San Diego against Thomas T. Johnson ("Johnson") and Michael C. Dickman ("Dickman"). The Commission's complaint alleges that Johnson and Dickman engaged in insider trading in the stock of Tech Data Corporation ("Tech Data") prior to the public announcement on May 20, 1999, that Tech Data had entered into a three-year, $6 billion contract to assemble and distribute computers for GE Capital IT Solutions ("GE Capital").
The complaint alleges that Johnson learned material, non-public information regarding the pending contract between Tech Data and GE Capital in the course of his employment as a sales manager for Tech Data. The complaint further alleges that Johnson tipped Dickman, his former housemate, with information regarding the pending contract and the public announcement thereof and that, on May 19, 1999, Dickman purchased 20,000 shares of Tech Data common stock. Tech Data and GE Capital publicly announced their contract prior to the opening of trading on May 20, 1999. After the announcement, the share price of Tech Data's common stock opened at $39.375, a 14% increase over the previous day's close of $34.4375 per share. Dickman sold all 20,000 shares of Tech Data stock on May 21, 1999, realizing a profit of $105,693.44. On June 1, 1999, Dickman purchased a cashier's check for more than $24,000 in Johnson's name, which Johnson deposited the same day.
The Commission alleges that, as a result of the conduct described above, Johnson and Dickman violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In its action, the Commission seeks a final judgment against Johnson and Dickman enjoining them from future violations of the foregoing antifraud provisions, ordering them to disgorge all ill-gotten gains with prejudgment interest and assessing civil penalties against them.