Securities Law Updates | New Releases/No Action Letters
January 24, 2012
District Court Orders Plastics Executive to Pay $49.5 Million in SEC Case
Securities and Exchange Commission v. Alfred S. Teo, Sr., et al.
SEC No. 2011-275, Litigation Release No. 22209, Civil Action No. 04-1815-SDW-MCA (D. N.J.), 12/22/2011
The Securities and Exchange Commission has announced the successful resolution of its trial against a plastics industry executive charged with lying in SEC filings regarding his ownership of Musicland Stores Corporation stock. Alfred S. Teo, Sr. and a trust he controlled have been ordered by a federal judge to pay $49.5 million in a final judgment against them.
Under SEC rules, when a person or group of people acquires beneficial ownership of more than 5 percent of a voting class of a company’s publicly traded stock, they are required to file a Schedule 13D with the SEC.
Teo, who is chairman…
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