WASHINGTON -- The former chairman of FNW Bancorp in Mount Prospect, III., has agreed to pay about $571,000 to settle charges by federal securities regulators who alleged that he purchased FNW stock while knowing about an unannounced merger.
Without admitting or denying the allegations, Richard L. Joutras also agreed to the entry of a permanent injunction, the Securities and Exchange Commission said.
When FNW announced on March 25, 1991, that it had agreed to be acquired by NDB Bancorp, Mr. Joutras had paper profits of $326,718 on the stock purchases, the SEC alleged.
Under the settlement, Joutras will pay $326,718 as well as $92,886 in interest and a civil penalty of $151,718, the SEC said.
