Barry L. Saffer

Litigation Release No. 17838 / November 14, 2002

United States v. Barry L. Saffer, 02 CR 864 (NRB) (S.D.N.Y. November 14, 2002)

Securities and Exchange Commission v. Barry L. Saffer, 02 CIV 5117 (SWK) (S.D.N.Y.)

COURT ORDERS BARRY L. SAFFER, FORMER SENIOR FINANCIAL OFFICIAL OF MANUGISTICS GROUP, INC., TO DISGORGE $185,000 AND ENJOINS HIM FROM FUTURE VIOLATIONS OF THE SECURITIES LAWS

On November 13, 2002, the United Stated District Court for the Southern District of New York ordered Barry L. Saffer, a former Director of Financial Planning and Analysis with Manugistics Group, Inc., in Rockville, Maryland, to pay $185,000 in disgorgement and enjoined him from further violations of the Federal securities laws. The Honorable Shirley Wohl Kram issued the order.

On July 2, 2002, the Commission filed a civil action against Saffer alleging that he violated the anti-fraud provisions of the federal securities laws by engaging in illegal insider trading. See SEC v. Barry L. Saffer, Litigation Release No. 17597 (July 3, 2002). The complaint states that Saffer obtained nonpublic company information by virtue of his position with Manugistics and traded in advance of company news announcements on multiple occasions over a three-year period from January 1999 through March 2002. Saffer consented to entry of the court's judgment against him.

Also on July 2, 2002, Saffer pleaded guilty to ten counts of securities fraud in related criminal charges. On October 17, 2002, he was sentenced to twenty-four months of incarceration. See United States v. Barry L. Saffer, 02 CR 864 (NRB) (S.D.N.Y.). The court delayed ordering restitution pending resolution of the Commission's civil enforcement action.

The Commission acknowledges the assistance provided by the Chicago Board Options Exchange in the investigation of this matter.