SEC SETTLES ACTION AGAINST APP PHARMACEUTICALS OFFICIAL

(The following is a reformatted version of a press release
issued by the Securities and Exchange Commission and received
via e-mail. The release was confirmed by the sender.) 
September 6, 2012 
SEC Files Settled Insider Trading Action against Pharmaceutical
Company Executive and His Father-In-Law 
On September 6, 2012, the Securities and Exchange Commission
filed a civil injunctive action in the United States District
Court for the Northern District of Illinois against Arthur H.
Reed, who during the relevant time period was Director of
Contract Marketing for APP Pharmaceuticals, Inc., and Allan F.
Derusha, Reed’s father-in-law.  The Commission alleges that Reed
and Derusha engaged in unlawful insider trading and/or tipping
in advance of APP’s July 7, 2008 public announcement that it was
being acquired by Fresenius SE. 
According to the Commission’s complaint, Reed on or before May
27, 2008 learned through his employment at APP that APP was in
the process of being acquired by another company and
subsequently purchased  $438,504 of APP stock based on his
knowledge of the pending acquisition.  Reed also tipped his
father-in-law, Derusha, regarding the pending acquisition, and
Derusha subsequently purchased $257,374 of APP stock.  Reed and
Derusha sold their APP stock after APP’s acquisition was
publicly announced, realizing $272,958 and $163,281 in profits
respectively. 
The Commission’s complaint charges Reed and Derusha with
violating Section 10(b) of the Exchange Act and Rule 10b-5
thereunder.  To settle the Commission’s charges, Reed has
consented, without admitting or denying the Commission’s
allegations, to the entry of a final judgment: (1) permanently
enjoining him from future violations of Section 10(b) of the
Exchange Act and Rule 10b-5 thereunder; (2) requiring him to pay
disgorgement of $272,958 plus prejudgment interest of $38,714;
and (3) requiring him to pay a civil penalty of $94,182, but not
imposing a greater penalty based upon his financial condition.
To settle the Commission’s charges, Derusha has consented,
without admitting or denying the Commission’s allegations, to
the entry of a final judgment: (1) permanently enjoining him
from violations of Section 10(b) of the Exchange Act and Rule
10b-5 thereunder; and (2) requiring him to pay disgorgement of
$159,230 plus prejudgment interest of $19,578, and a $79,615
civil penalty.  The final judgments are subject to the Court’s
approval. 
(sgp) NY 
#<278855.14078.3.1.0.0.76>#
 
 
Press spacebar to pause and continue. Press esc to stop.