U.S. Securities and Exchange Commission
Litigation Release No. 18246 / July 23, 2003
United States Securities and Exchange Commission v. Marvin W. Goldstein, (Case No. 03-4202, Judge Davis) (U.S.D.C. Minn. 2003).
Commission Files Complaint Against Marvin Goldstein In Alleged Insider Trading Scheme
Goldstein Consents To Permanent Injunction And An Officer And Director Bar
The Commission announced today that it filed and simultaneously settled an injunctive action in the United States District Court for the District of Minnesota against Marvin W. Goldstein ("Goldstein"). The action was based on Goldstein's conviction of two counts of securities fraud in violation of 15 U.S.C. § 78j(b) and 17 C.F.R. §240.10b-5. Goldstein, in his criminal plea, agreed to pay fines and restitution totaling $1,000,000.
The Commission complaint alleges that Goldstein engaged in insider trading by trading in the securities of Tower Automotive, Inc. and A.O. Smith Corporation while in possession of material, nonpublic information provided by George Kline. This activity constituted violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder.
Goldstein consented, without admitting or denying the allegations in the complaint, to the entry of an order of permanent injunction enjoining him from violations of Section 10(b) of the Exchange Act and Rule 10b-5 and barring him from serving as an officer or director of any public company.
The complaint notes that the Commission did not seek disgorgement and penalties because the plea agreement reached between Goldstein and the U.S. Attorney's office for the District of Minnesota provided for the payment of $1 million.
The Commission would like to thank the United States Attorney for the District of Minnesota for its assistance and cooperation in this matter.