U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19045 / January 21, 2005
SECURITIES AND EXCHANGE COMMISSION v. ALFRED S. TEO, SR., ET AL., Civil Action No. CV 04-1815 (WGB) (D. N.J.)
MARK J. LAUZON ENJOINED FROM ENGAGING IN INSIDER TRADING
NEW YORK -- The Securities and Exchange Commission announced that on January 3, 2005, Judge William G. Bassler entered a final judgment against defendant Mark J. Lauzon ("Lauzon"), enjoining him from further violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The judgment also ordered Lauzon to disgorge $1,969 plus $338 in prejudgment interest, and to pay a $1,969 civil penalty. Lauzon consented to the entry of the judgment without admitting or denying the allegations in the Commission's complaint.
The complaint, filed on April 22, 2004, charged Lauzon with engaging in insider trading in the securities of Musicland Stores Corporation ("Musicland") before Musicland's December 7, 2000 announcement that it would be acquired by another company by tender offer. The Commission's complaint alleges that Alfred S. Teo, Sr. ("Teo"), a major Musicland shareholder, learned about the proposed tender offer for Musicland, and then tipped Lauzon and others with this information. According to the Commission's complaint, approximately two hours after Teo tipped Lauzon on November 9, 2000, Lauzon purchased 500 shares of Musicland stock, which he sold on December 11, 2000, and received $1,969 in illicit profits.
The Commission continues to prosecute the litigation against the remaining defendants.
See also: L.R. 18673 (April 22, 2004)