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U.S. Securities and Exchange Commission

U.S. Securities and Exchange Commission

Litigation Rel. No. 18319 / September 2, 2003

SEC v. Geoffrey E. Fitts and William D. Fabri, Sr. (United States District Court for the District of Massachusetts, C.A. No. 03-CV-10658 (DPW), filed April 10, 2003)

Notice of Proposed Distribution of Funds to Investors in MetroWest Bank Stock

On April 21, 2003, the U.S. District Court for the District of Massachusetts entered a final judgment in the above case against Defendant William D. Fabri, to which Fabri consented without admitting or denying the allegations in the complaint. The Commission alleged in the complaint that Fabri engaged in illegal insider trading in the stock of MetroWest Bank in May 2001 while in possession of material, nonpublic information concerning the pending acquisition of MetroWest Bank by Banknorth Group, Inc., prior to the public announcement of the acquisition on June 11, 2001. As part of the final judgment, Fabri was ordered to pay a total of $24,958.65 in disgorgement, a civil penalty and prejudgment interest. Fabri satisfied the disgorgement, civil penalty and prejudgment interest obligations under the final judgment entered against him by paying $24,958.65 to the clerk of the court for deposit into the Court Registry Investment System.

On August 22, 2003, the Commission moved for an order seeking the approval of its proposed plan to distribute $23,828.65 of those funds, plus accrued interest, to certain individuals and entities who invested in MetroWest Bank stock. On August 26, 2003, the Honorable Douglas P. Woodlock, United States District Court Judge, entered an order approving the Commission's proposed distribution plan. That Order permits any person and/or entity wishing to comment on or object to the distribution plan to do so in writing by filing their comments with the Court within 30 days from the date the proposed plan was filed with the Court, with a copy to be served upon the Commission's counsel in this action.

For those interested in details concerning this action and the procedure for commenting on or objecting to the distribution plan, a complete copy of the Commission's motion and memorandum in support (PDF format) and the Court's Order (PDF format) may be found on the Commission's Web site.



Modified: 09/02/2003