U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18496 / December 9, 2003
SECURITIES AND EXCHANGE COMMISSION v. RICHARD WILSON, Defendant. 03 CV 2938G (N.D.Tex.)
On December 4, 2003, the Securities and Exchange Commission filed a complaint in the United States District Court for the Northern District of Texas alleging illegal insider trading by Richard Wilson, 74, of Grapevine, Texas. The Commission's complaint alleges that on February 12, 2001 and March 6, 2001, Wilson violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, when he bought a total of 1,500 shares of common stock in H.D. Vest, Inc. (H.D. Vest) while in possession of material, nonpublic information concerning an upcoming merger between H.D. Vest and Wells Fargo & Co. (Wells Fargo). Wilson obtained this information by reading a confidential document that he found in his daughter and son-in-law's home. Wilson's son-in-law was an H.D. Vest insider who had knowledge about the upcoming Wells Fargo merger.
Wilson, without admitting or denying the Commission's allegations, has consented to the relief sought in the Commission's complaint. In his consent, Wilson agreed to disgorge $21,132.50 in illegal profits plus $3,148.92 in prejudgment interest, and to pay a civil penalty of $26,415.63, an amount equal to 1.25 times his illegal profits. The Commission intends to have these funds paid into a court account pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002 for ultimate distribution to victims of the fraud. In addition, the judgment permanently enjoins Wilson from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
Specifically, the Commission's Complaint alleges: