U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 19374 / September 14, 2005
Securities and Exchange Commission v. Sonja Anticevic et al., 05 Civ. 6991 (KMW) (S.D.N.Y.)(August 18, 2005)
Court Enters Preliminary Injunctions against David Pajcin and Foreign Defendants Involved in Suspicious Reebok Trading
On September 13, 2005, the Honorable Kimba M. Wood entered preliminary injunctions against defendants Sonja Anticevic ("Anticevic"), David Pajcin ("Pajcin"), Zoran Sormaz ("Sormaz"), Perica Lopandic ("Lopandic"), Ilija Borac ("Borac") and Certain Unknown Persons trading in an account at an Austrian broker, Direktanlage.at AG ("the Direktanlage Traders"). Among other things, the Court order requires the foreign defendants to repatriate the proceeds of Reebok International Ltd. ("Reebok") securities transactions.
By virtue of this order, there are now preliminary injunctions in place against all of the defendants in this action. On August 18, 2005, defendants Henry Siegel ("Siegel"), Monika Vujovic ("Vujovic") and Elvis Santana ("Santana") consented to the entry of preliminary injunctions against them which, among, other relief, provided for certain asset freezes. Also on August 18, 2005, a separate preliminary injunction was entered against Anticevic.
On August 18, 2005, the Commission filed an amended Complaint, charging the nine defendants with insider trading for directing and/or conducting additional suspicious trading in the securities of Reebok both domestically and abroad just prior to Reebok's August 3, 2005 announcement that it had agreed to be acquired by adidas-Salomon AG. The Commission's amended Complaint alleges the following:
- On August 1 and 2, 2005, through four domestic accounts, Anticevic, Siegel, Vujovic, and Santana purchased a total of 4,097 Reebok "out of the money" call options. Collectively, these accounts comprised nearly 80% of the buy volume in Reebok call options on those days. All positions in each account were liquidated after the acquisition announcement on August 3, 2005. In total, the domestic trading netted profits exceeding $4 million.
- On those same days, through foreign accounts maintained at the same broker, Anticevic, Sormaz, Lopandic and Borac purchased the equivalent of 145,240 shares of Reebok common stock. Each of those accounts sold all of its Reebok shares on August 3, 2005. On August 2, 2005, an account maintained at an Austrian broker, Direktanlage, purchased 7,545 shares of Reebok common stock, which were also sold on August 3, 2005. Collectively, the proceeds from the foreign trading in Reebok shares were more than $2 million.
- The Commission's complaint alleges that Pajcin, who is Anticevic's nephew, placed or directed some of the Reebok trades, and tipped other defendants who placed Reebok trades.
- In addition to the Reebok trading, overlapping trades were placed at the same time in both the domestic and foreign accounts in the securities of other companies.
As a result of the defendants' conduct, the Commission alleges that the defendants engaged in illegal insider trading in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Among other things, the Complaint seeks permanent injunctive relief, the disgorgement of all illegal profits, and the imposition of civil monetary penalties.
Litigation Release No. 19327 / August 5, 2005
Litigation Release No. 19340 / August 19, 2005