FOR IMMEDIATE RELEASE
Washington D.C. — The Securities and Exchange Commission today announced charges against an Atlanta resident accused of insider trading in the stock of a technology company by exploiting nonpublic information he learned from the friend of a company executive.
The SEC’s Enforcement Division alleges that Charles L. Hill Jr. made approximately $740,000 in illicit profits by trading in Radiant Systems stock on the basis of confidential inside information about an impending tender offer by NCR Corporation to buy the company. Hill was aware that his friend who shared this nonpublic information also was a friend of a Radiant Systems executive. Hill purchased approximately 100,000 Radiant Systems shares that were valued at nearly $2.2 million on the last trading day before the acquisition was publicly announced in July 2011. Hill had not purchased equity securities in the previous four years, and had never before bought Radiant Systems stock.
“The SEC has rules designed to protect against misuse of nonpublic tender offer information. We will take action against individuals who acquire such information from insiders and exploit it for their own trading benefit,” said William P. Hicks, Associate Regional Director of the SEC’s Atlanta office.
The SEC’s Enforcement Division alleges that Hill violated Section 14(e) of the Securities Exchange Act of 1934 and Rule 14e-3. The matter will be scheduled for a public hearing before an administrative law judge for proceedings to adjudicate the Enforcement Division’s allegations and determine what, if any, remedial actions are appropriate.
The SEC appreciates the assistance of the Financial Industry Regulatory Authority.