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Steel Execs Charged With Inside Trading

LOUISVILLE (CN) - The SEC charged four steel executives and four of their family and friends with making $320,000 from illegal inside trading, based on tips that at Steel Technologies was about to be bought by Mitsui & Co., of Japan.

Four Steel Technologies vice presidents of sales learned of the acquisition before its public announcement and passed along tips to their families or friends, the SEC says. Altogether, the eight defendants then bought more than $575,000 in Steel Technologies stock, and sold it after the public announcement for "approximately $320,000 in illegal profits," according to the federal complaint.

The four vice presidents are Patrick Carroll, William Carroll, David Stitt and David Mark Calcutt.

Patrick Carroll, Stitt and Calcutt are also accused of passing along the tips.

"Specifically, Patrick [Carroll] tipped his son, James P. Carroll ('James'); Calcutt tipped his brother, Christopher T. Calcutt ('Christopher'); and Stitt tipped his best friend, John P. Monroe ('Monroe')," the complaint states. "Monroe, in turn, passed the same material nonpublic information to his close friend, Stephen Somers ('Somers'). All of these tippees - i.e., James, Christopher, Monroe and Somers - also traded based on material nonpublic information about the forthcoming acquisition of STTX."

All the vice presidents live in Kentucky.

The SEC seeks disgorgement, penalties and an injunction.

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