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Steel executives settle insider trading case

Keywords: Tags  Steel Technologies, Securities and Exchange Commission, SEC, insider trading, Mitsui & Co., Michael Carroll, Patrick Carroll, James Carroll William Carroll


CHICAGO — Four steel company executives and two others have agreed to pay nearly $640,000 to settle insider trading allegations, the Securities and Exchange Commission (SEC) said.

The SEC filed a civil action against eight people in 2011, alleging that four Steel Technologies Inc. executives had traded on the basis of nonpublic information about Mitsui & Co. (USA) Inc.’s acquisition of Steel Technologies and that three of them helped others do the same thing (amm.com, March 17, 2011).

Six defendants, who collectively earned $268,805 from their trades, consented to the final judgments entered in U.S. District Court in Kentucky without admitting or denying the SEC’s allegations.

Under the final judgments, Patrick Carroll will pay $34,279 plus prejudgment interest of $10,412 and a penalty of $34,279; William Carroll will pay $54,163 plus interest of $16,452 and a $54,163 penalty; James Carroll will pay $3,020 plus interest of $917 and a $3,020 penalty; David Calcutt will pay $150,297 plus interest of $45,652 and a $150,297 penalty; Christopher Calcutt will pay $4,250 plus interest of $1,291 and a $4,250 penalty; and David Stitt will pay $22,796 plus interest of $6,924 and a $42,796 penalty.

Patrick and William Carroll, David Calcutt and Stitt were all executives of Steel Technologies. Patrick, William and James Carroll are all related to Steel Technologies’ president and chief executive officer Michael Carroll, who was not charged.

The SEC’s accusations against John Monroe and Stephen Somers are still pending.

The Louisville, Ky.-based company cooperated fully with the SEC investigation, it said in March 2011.

New York-based Mitsui & Co. USA bought the steel processor for $532 million in cash and assumed its debt in 2007.


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