U.S. Securities and Exchange Commission
Litigation Release No. 18378 / September 30, 2003
United States v. Paul A. Gianamore and Ryan D. Evans, Case No. 03 CR928 (N.D. IL)
Securities and Exchange Commission v. Ryan D. Evans and Paul A. Gianamore, Case No. 02-C-0582 (N.D. IL).
Former Credit Suisse First Boston Employee Ad Friend Previously Sued By SEC For Insider Trading Indicted For Conspiring To Engage In Securities Fraud And For Insider Trading
The Securities and Exchange Commission (Commission) announced that on September 25, 2003, a federal grand jury charged Paul A. Gianamore and Ryan D. Evans in an eight-count indictment with conspiring to engage in securities fraud and with engaging in insider trading. The indictment also charges that Gianamore and Evans engaged in efforts to conceal their conspiracy.
The Commission previously brought a civil action against Gianamore and Evans for insider trading. The Commission's complaint alleged from in or about December 1999 to in or about August 2000, Paul Gianamore then a Credit Suisse First Boston Financial Analyst, tipped his friend Ryan Evans with material, nonpublic information regarding publicly traded companies on at least four occasions. Evans then traded in the securities of these companies while in possession of this information. Specifically, the Commission alleged that during the relevant time period, Credit Suisse First Boston's Chicago office ("CSFB Chicago") acted as a financial adviser to one of the parties of at least four merger or acquisition transactions. The Commission further alleged that through his employment at CSFB Chicago, Gianamore obtained nonpublic information about the mergers and acquisitions in issue before they were publicly announced and then tipped Evans with the inside information. The Commission alleged that while in possession of this information, Evans purchased shares in companies shortly before an announcement of the merger or acquisition. In each case, Evans sold his shares shortly after the public announcement of the merger or acquisition.
Gianamore and Evans previously settled the Commission's action without admitting or denying the allegations of the Commission's Complaint. Gianamore agreed to pay disgorgement in the amount of $243,667.17, plus prejudgment interest in the amount of $52,717.26 for a total payment of $296,384.43. The Commission agreed to waive all but $17,046.98 of the disgorgement and prejudgment interest based on Gianamore's sworn representations to the Commission regarding his financial condition. Gianamore also agreed to entry of an order of permanent injunction, enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Evans previously agreed to pay disgorgement in the amount of $243,667.17, plus prejudgment interest in the amount of $41,890.82 for a total payment of $285,557.99. The Commission agreed to waive all but $49,722.08 of the disgorgement and prejudgment interest based on Evans' sworn representations to the Commission regarding his financial condition. Evans also agreed to entry of an order of permanent injunction, enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder.