U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19038 / January 19, 2005
SEC v. Patrick S. Anderson and Vickie L. Westbrook, Case No. 1:05-CV-0143 (N.D. Ga.)
SECURITES AND EXCHANGE COMMISSION SUES FORMER VICE PRESIDENT OF ATLANTA, GEORGIA BANK AND HIS FRIEND FOR INSIDER TRADING.
On January 19, 2005 the Securities and Exchange Commission filed a complaint in the United States District Court for the Northern District of Georgia, alleging insider trading by Patrick S. Anderson and Vickie L. Westbrook. Anderson is the former vice president of Tucker Federal Bank, a regional bank in Atlanta, Georgia that was previously owned by Eagle Bancshares, Inc. The complaint alleges that, in February 2002, Anderson learned that Eagle Bancshares would soon be acquired by a subsidiary of the Royal Bank of Canada. Shortly thereafter, Anderson began buying Eagle Bancshares stock. The complaint also alleges that in February 2002, Anderson told Westbrook, his friend, about the impending acquisition. Before the acquisition was announced, Westbrook also purchased Eagle Bancshares stock. Shortly after the acquisition became public in March 2002, Anderson and Westbrook sold the shares they had purchased, generating profits of $134,999 for Anderson and $32,995 for Westbrook.
The complaint alleges that Anderson and Westbrook violated the antifraud provisions of the Securities Exchange Act of 1934 ("Exchange Act"), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, by trading on material non-public information. Without admitting or denying the allegations in the complaint, Anderson and Westbrook consented to final judgments that (a) enjoin them from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, (b) require Anderson to disgorge the $134,999 he derived from his insider trading plus $16,845 in prejudgment interest thereon, (c) require Westbrook to disgorge the $32,995 she derived from her insider trading plus $4,112 in prejudgment interest thereon, and (d) require Anderson and Westbrook to pay one-time civil penalties of $134,999 and $32,995, respectively.