Monday, September 25, 2006

More on Ways to Go to Jail

A senior lawyer of the Department of Energy's Lawrence Livermore National Laboratory has settled accusations of insider trading in the stock of the Cray Computer Company.

The Securities and Exchange Commission accused William DeGarmo of making $27,332 through trading shares of the Cray in December, based on his knowledge of a canceled contract. The S.E.C. maintained that Mr. DeGarmo engaged in transactions of the company stock just before Cray disclosed Livermore had scrapped its deal to buy a $30 million Cray-3 supercomputer.

Cray's stock dropped on that news. The S.E.C. said Mr. DeGarmo, a University of California lawyer and general counsel for the laboratory in Livermore, Calif., was able to profit by short-selling, or selling borrowed shares then repurchasing them at the lower price.

The S.E.C. made the allegations Tuesday in documents filed in Federal District Court in Denver. Mr. DeGarmo settled the complaint without acknowledging guilt, the S.E.C. filings said. He also agreed to disgorge all profits and pay an additional $27,000 in fines.

There's one more too, iirc,

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