U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19224 / May 17, 2005

U.S. Securities and Exchange Commission v. Fiore J. Gallucci, Ronald A. Manzo, and Gary B. Taffet, No. 04 CV 04493 (SAS) (S.D.N.Y. filed June 16, 2004).

SEC SETTLES INSIDER TRADING CHARGES AGAINST FORMER NEW JERSEY POLITICAL FIGURE

The U.S. Securities and Exchange Commission ("Commission") today announced that, on May 4, 2005, the U.S. District Court for the Southern District of New York entered a settled Final Judgment as to Defendant Gary B. Taffet, in the Commission's previously filed civil injunctive insider trading action, U.S. Securities and Exchange Commission v. Fiore J. Gallucci, Ronald A. Manzo, and Gary B. Taffet, No. 04 CV 04493 (SAS) (S.D.N.Y. filed June 16, 2004). The Commission's Complaint alleges that Taffet and two other defendants traded on the basis of material, nonpublic information regarding the identities of target companies in contemplated mergers and acquisitions and/or tipped others with that information. The Complaint alleges that, at various times during 1998 and 1999, Taffet received tips from his friend and associate, Ronald A. Manzo, about the target companies and used this information to purchase securities in the companies prior to the public announcements of the proposed mergers or acquisitions, realizing substantial profits. The Complaint further alleges that Taffet tipped others who also traded in the target company securities and realized substantial profits. Defendants Fiore J. Gallucci and Manzo previously consented to a settlement of the Commission's action against them.

The Final Judgment against Taffet permanently enjoins him from further violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b 5 and 14e 3 thereunder and orders Taffet to pay disgorgement of $402,739, together with prejudgment interest thereon in the amount of $119,520, and a civil money penalty of $202,741. Taffet consented to the entry of the Final Judgment, without admitting or denying the allegations in the Commission's Complaint, except as to jurisdiction.

See also Litigation Release No. 18746 (June 16, 2004); Exchange Act Release No. 34-50334 (September 9, 2004) and Litigation Release No. 18873 (September 9, 2004).

http://www.sec.gov/litigation/litreleases/lr19224.htm