The Securities and Exchange Commission announced today that it filed a Complaint against Linda Ensor of St. Louis, Missouri and her husband, Stephen Ensor, also of St. Louis, for insider trading in the securities of TALX Corporation, a St. Louis-based technology company. The Commission alleged that the Ensors illegally sold TALX shares in advance of a negative press release issued by the company after the close of trading on November 14, 2002. Linda Ensor, a former executive assistant at TALX Corporation, learned of the contents of the press release on the morning of November 14, 2002, when she performed various administrative tasks in preparation for the release's issuance. After completing these tasks, Linda Ensor drove to her home and called Stephen Ensor to inform him of the contents of the forthcoming announcement. During the phone call, Stephen Ensor began placing online orders to sell all 5,510 shares held in the couples' retirement accounts. The illegal sales generated total proceeds of $70,298 and enabled the Ensors to avoid the effects of a dramatic decline in TALX's stock price the following day.
The Complaint charges the Ensors with violating Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5. The Commission's Complaint seeks permanent injunctions against the Ensors from future violations of these provisions, disgorgement of their losses avoided, and other appropriate relief. The Complaint was filed in the United States District Court for the Eastern District of Missouri.