The case was unusual in that it involved the son of MCA's president, Sidney Sheinberg, who overheard his father at home discussing the impending deal. Despite a warning from his father not to trade on the information, Jonathan Sheinberg passed on the share tip to three associates including his father-in-law.
The SEC estimated that the three made illicit profits of dollars 417,000 ( pounds 273,000) as MCA shares doubled on the takeover news. Together with Jonathan Sheinberg they have agreed to pay back the estimated profits plus additional penalties in a dollars 1.3m settlement that did not include any admission or denial of guilt.
Richard Ursitti, the father-in- law, agreed to pay dollars 573,475, representing dollars 260,826 in forfeiture of allegedly illegal profits, an equal amount as insider-trading penalty and dollars 51,823 in interest.
Barry Fogel, a friend of Jon Sheinberg's former wife, agreed to pay a total of dollars 223,521, of which dollars 103,792 represented forfeitures, while Richard Shephard, Jon Sheinberg's business manager, agreed to pay dollars 112,092, including dollars 53,368 in forfeitures.
A Washington newsletter has reported that lawyers of the Federal Trade Commission are recommending an injunction against Microsoft relating to its trade practices in the computer software industry.Reuse content