UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17628 / July 24, 2002
SEC v. Joseph Sidoryk, Gary L. Camp, Todd Camp and Thomas J. Siska, (U.S.D.C. N.D. Ill., Civil Action No. 02C-5206 (JWD/SIS), filed July 23, 2002).
Chicago-Based Employee of Three-Five Systems, Inc. Charged with Trading and Tipping Negative Inside Information to Family and Friend
The U.S. Securities and Exchange Commission ("Commission") announced that it filed a complaint in the United States District Court for the Northern District of Illinois on July 23, 2002 against Joseph Sidoryk ("Sidoryk"), Director of Strategic Accounts at Three-Five Systems, Inc. ("Three-Five") and primary liaison to Motorola, Inc. ("Motorola"), and a resident of Elmhurst, Illinois, Gary L. Camp ("Gary Camp"), a resident of Rock Island, Illinois, Todd Camp, a resident of Elmhurst, Illinois and Thomas J. Siska ("Siska"), a resident of Norridge, Illinois. The complaint alleges that Sidoryk, Gary Camp, his father-in-law, Todd Camp, his brother-in-law, and Siska, his friend, engaged in insider trading in the stock of Three-Five, while in possession of material, non-public information. Three-Five, among other things, specializes in the design and manufacture of liquid crystal display products used for operational control and wireless communication devices.
In its complaint, the Commission alleges that in late May through early July of 2000, Sidoryk possessed material, non-public information that Three-Five's largest customer, Motorola, would be significantly reducing its order for the second-half of 2000. As a result, on July 12, 2000, Three-Five issued a public announcement that materially and negatively impacted the value of its stock. The Complaint alleges that prior to the public announcement, Sidoryk communicated this material, non-public information about the significantly reduced Motorola order to his family members, Gary Camp and Todd Camp, and his friend, Siska. The Complaint also alleges that while in possession of this material, non-public information and prior to Three-Five's negative public announcement, Sidoryk, Gary Camp and Siska each sold their entire holdings in Three-Five and Todd Camp sold short Three-Five stock. As a result, these trades resulted in approximately $29,816.19 in losses avoided and approximately $15,343.75 in realized and unrealized gains by Sidoryk, Gary Camp, Todd Camp and Siska from their illegal insider trading. Specifically, the Commission alleged that Sidoryk, Gary Camp, Todd Camp and Siska each violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder in connection with their illegal insider trading in the stock of Three-Five.
The Commission is seeking the entry of a permanent injunction, disgorgement of any ill-gotten gains, plus prejudgment interest, and a civil penalty from each of the defendants totaling approximately $124,770. Defendants Sidoryk, Todd Camp and Siska consented, without admitting or denying the allegations to the complaint, to the entry of a permanent injunction and to the payment of disgorgement and civil penalties.