United States Securities & Exchange Commission v. Maxwell

OPINION AND ORDER

MARBLEY, District Judge.

I. INTRODUCTION

This enforcement action filed by the United States Securities and Exchange Commission (“SEC” or the “Commission”) involves alleged insider trading in the stock of Worthington Foods, Inc. (“Wor-thington”). The SEC alleges that Defendant, David W. Maxwell, a senior executive at Worthington, provided an illegal tip to his barber, Defendant, Elton L. Jehn, pri- or to the October 1, 1999, announcement that the Kellogg Company (“Kellogg”) had entered into an agreement to acquire Wor-thington. The SEC contends that this tip allowed Defendant…