Fergie's Tech Blog

Ex-Cisco Manager Settles SEC Trading Case

Henry K. Lee writes in The San Francisco Chronicle:

Federal regulators have reached a settlement with a former Gilroy city councilman accused of insider trading for allegedly tipping off his two brothers to pending acquisitions when he worked as a high-level manager at Cisco Systems Inc. in San Jose.

Without admitting any wrongdoing, ex-Councilman Anthony Sudol III, 44, of Gilroy and his brothers, Michael Sudol, 42, of Beijing and Richard Sudol, 41, of Oceanside (San Diego County), agreed to the settlement last week with the Securities and Exchange Commission.

Anthony Sudol will pay a $150,000 penalty and Michael Sudol is to pay $200,275. The SEC waived a penalty of $258,982 against Richard Sudol after agreeing that he would be financially unable to pay it.

Anthony Sudol learned of five impending acquisitions between January 1999 and November 2003 and shared the information with his younger brothers before it was publicly released, according to the SEC complaint filed in U.S. District Court in San Francisco.

posted by Fergie @ 5/16/2006 06:26:00 AM