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Insider-Trading Charges Settled: Former Amsterdam Subsidiary President to Pay $30,321

Strategic Insights

— 1 min read

A former president of a Denver-based company's Amsterdam subsidiary, Joseph P. Webster, has agreed to settle insider-trading charges brought by the Securities and Exchange Commission. Webster, previously the president of Priority Telecom, allegedly bought 1,441 shares of UnitedGlobalCom stock before the company announced a $300 million deal with Microsoft Corp. He then sold his shares, realizing a 25% profit. The SEC complaint claims that Webster's position at Priority Telecom provided him with early access to documents detailing the upcoming IPO of United Pan-European Communications, a UnitedGlobalCom subsidiary.

Key Takeaways:

  • Joseph P. Webster, a former president of Priority Telecom, agreed to settle insider-trading charges with the SEC.
  • Webster bought 1,441 shares of UnitedGlobalCom stock in January 1999, hours before the company announced a $300 million deal with Microsoft Corp.
  • He sold his shares two days later, realizing a 25% profit, after the stock rose $10 per share.
  • Webster's position at Priority Telecom allegedly provided him with early access to documents detailing the upcoming IPO of United Pan-European Communications.
  • The SEC complaint charges that Webster received documents such as the registration statement and "road show materials" referring to the Microsoft deal prior to his trading.
  • Webster also informed at least two employees about the agreement.
  • He will return $15,321 in trading profits and pay an additional $15,000 in penalties.

Statistics:

  • $300 million: The amount invested by Microsoft in UnitedGlobalCom's IPO.
  • 25%: The profit earned by Webster on his UnitedGlobalCom stock after selling his shares.
  • 1,441: The number of shares bought by Webster in January 1999.
  • $15,321: The amount Webster agreed to return in trading profits as part of the settlement.
  • $15,000: The additional penalties Webster agreed to pay as part of the settlement.

Sources:

  • "SEC Charges Denver Executive with Insider Trading" (Source: Los Angeles Times, January 25, 1999)
  • Complaint, SEC v. Joseph P. Webster (Source: U.S. District Court, Washington, 1999)

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