LITIGATION RELEASE NO. 17575 / June 20, 2002
Securities and Exchange Commission v. Parvin Gidvani, Civil Action No. 01-20428 (5th Cir., May 15, 2002)
U.S. COURT OF APPEALS AFFIRMS DISTRICT COURT JUDGMENT ORDERING PARVIN GIDVANI, FORMER EMPLOYEE OF OWEN HEALTHCARE, INC., TO PAY $305,984 IN INSIDER TRADING CASE
The Securities and Exchange Commission ("Commission") announced today that on May 15, 2002, in Securities and Exchange Commission v. Parvin G. Gidvani, No. 01-20428 (5th Cir.), the U.S. Court of Appeals for the Fifth Circuit, by means of a per curiam order, affirmed a Final Judgment of the U.S. District Court for the Southern District of Texas which granted the Commission's motion for summary judgment against Parvin Gidvani. The District Court found Gidvani, a former employee of Owen Healthcare, Inc., liable for insider trading in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The District Court Judgment required Gidvani to disgorge all of his illegal trading profits and the illegal trading profits of his two tippees, in an aggregate amount of $104,500. It also required him to pay interest of $44,734 on that disgorgement and a civil penalty of $156,750.
See Lit. Rel. No. 16482 (March 23, 2000); Lit. Rel. No. 16978 (April 30, 2001).