SEC CHARGES JOHN PACOWTA, FORMER DIRECTOR OF CENTER FINANCIAL CORPORATION, WITH INSIDER TRADING
The Commission today announced the filing of insider trading charges against John J. Pacowta, a resident of Middlebury, Connecticut, and a former director of Center Financial Corporation, a bank holding company.The Commission alleged that Pacowta illegally bought Center Financial stock ahead of a public announcement by First Union Corporation on June 17, 1996, that it intended to acquire Center Financial via merger.
According to the Commission, prior to his purchase, Pacowta attended a meeting of Center Financial's board of directors at which he learned that First Union was interested in acquiring Center Financial and that Center Financial's board of directors had voted to hold a special meeting the following week, with its investment bankers present, to discuss a possible sale or merger. Pacowta made an unrealized profit of $4,985.88 on his Center Financial purchase.
Pacowta agreed, without admitting or denying the Commission's allegations, to pay a civil penalty of $4,985.88 and to the entry of an injunction prohibiting him from future violations.
The Commission did not seek disgorgement because Pacowta already had paid to Center Financial more than the full amount of his ill-gotten gains due to a short-swing profit resulting from the same trade. [SEC v. John J. Pacowta, Civil Action No. 300-CV-00426, JCH, D. Conn.] (LR-16464)
SEC CHARGES NICHOLAS MIHALAS, FORMER DIRECTOR OF CENTER FINANCIAL CORPORATION, WITH INSIDER TRADING
The Commission today announced the filing of insider trading charges against Nicholas M. Mihalas, a resident of Kiawah Island, South Carolina, and a former director of Center Financial Corporation, a bank holding company.The Commission alleged that Mihalas illegally bought Center Financial stock ahead of a public announcement by First Union Corporation on June 17, 1996, that it intended to acquire Center Financial via merger.
According to the Commission, prior to his purchase, Mihalas attended a meeting of Center Financial's board of directors at which he learned that First Union was interested in acquiring Center Financial and that Center Financial's board of directors had voted to hold a special meeting the following week, with its investment bankers present, to discuss a possible sale or merger.
Mihalas made an unrealized profit of $175,085 on his illegal Center Financial purchase. Mihalas agreed, without admitting or denying the Commission's allegations, to pay $404,925.96 in disgorgement, prejudgment interest and civil penalties and to the entry of an injunction prohibiting him from future violations. [SEC v. Nicholas M. Mihalas, Civil Action No. 2:00-0726-23, D.S.C.] (LR-16465)
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