ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, May 10, 1996 TAG: 9605100045
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
The Securities and Exchange Commission on Thursday charged six people with illegal insider trading ahead of Microsoft Corp.'s 1994 announcement that it planned to acquire Intuit Inc. and with trading ahead of the deal's collapse last year.
It announced a settlement in which the defendants will pay $472,342.
The SEC said the information leaked out after Intuit's chief financial officer, William H. Lane III, confided in his wife, Kathleen, about Microsoft's pending activities. She in turn shared the information with her son and her daughter.
The son, James Propp, tipped two friends, Paul Tsang and Robert Guerin, who all bought Intuit stock and options together, according to the SEC. The daughter, Julie Propp, tipped a friend, Luther Knox, who also bought Intuit stock.
A day after Microsoft's Oct. 13, 1994, bid, Intuit's stock soared $17.121/2 to $67.371/2 a share on the Nasdaq stock market.
The $472,342 settlement payments by the six defendants include a $202,803 civil penalty paid by Kathleen Lane, the SEC said.
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