SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17699 / August 26, 2002

SEC v. JOHN GOMERSALL AND BARRY MCGRIFF (U.S. District Court for the District of Massachusetts, Civil Action No. 02-11680 REK)

COMMISSION FILES AND SETTLES INSIDER TRADING CHARGES AGAINST EMC ENGINEER AND ANCOR SALES MANAGER

On August 22, 2002, the Securities and Exchange Commission announced that it filed and settled insider trading charges against an EMC Corporation engineer and a former Ancor Communications, Inc. sales manager for trading on inside information in the stock of Ancor. The two bought Ancor shares before an April 25, 2000 news announcement concerning an agreement between EMC and Ancor. The announcement caused Ancor's stock price to skyrocket 66%. Following the announcement, the traders sold their Ancor shares to reap illegal profits. Ancor, formerly based in Eden Prairie, Minnesota, was acquired in 2000 by QLogic Corporation of Aliso Viejo, California. EMC is based in Hopkinton, Massachusetts. The two traders are:

• John Gomersall, 40, of Acton, Massachusetts. The Commission's complaint alleges that Gomersall, an EMC engineer, learned from EMC co-workers that Ancor and EMC had signed an original equipment manufacturer agreement (OEM). Gomersall then bought 2,000 shares of Ancor stock before the announcement, sold the shares the day of the announcement, and reaped $19,596 in profits.

• Barry McGriff, 54, of Bedford, New Hampshire. The Commission's complaint alleges that McGriff, Ancor's Eastern regional sales manager, negotiated the OEM agreement with EMC and knew that Ancor and EMC planned to announce the OEM agreement on April 25, 2000. McGriff then bought 1,000 shares of Ancor stock before the announcement and sold the shares the day after the announcement, to obtain $10,824 in profits.

Simultaneous with the filing of the complaint in United States District Court for the District of Massachusetts, both men settled the Commission's action without admitting or denying the complaint's allegations by agreeing not to commit future violations of the antifraud provisions of the securities laws (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder), giving up their profits plus interest, and paying civil penalties in amounts equal to their profits. Gomersall agreed to pay a total of $42,614 and McGriff agreed to pay a total of $23,538.

The Commission acknowledges the NASD's assistance in this matter.

http://www.sec.gov/litigation/litreleases/lr17699.htm