IBJNews

Locals settle First Indiana insider-trading case

Back to TopCommentsE-mailPrintBookmark and Share

The Securities and Exchange Commission said today that it has settled insider-trading charges against three local residents who bought shares in First Indiana Corp. immediately before the July 9, 2007, announcement that it was being acquired by a Milwaukee bank for a 42-percent premium.

The trio agreed to pay a total of $51,852 to settle the case. According to the SEC, all three bought First Indiana shares after a First Indiana board member complained to them about being inconvenienced by having to attend a special Sunday board meeting.

The board member is not identified in court papers. However, the description of the director matches only Indianapolis businessman Bill Mays, who served on First Indiana’s board from 2003 until the closing of the sale.

Furthermore, one of the settling parties is Mays’ daughter, Kristen, 33, who serves as assistant to the president of Mays Chemical, and another is Matthew B. Murphy III, 51, the company’s director of finance and administration. The other person settling is Nancy Jewell, 52, CEO of Indiana Minority Health Coalition.

Without admitting or denying allegations of wrongdoing, all three agreed to return the amount of their profits, plus pay an equal amount as a penalty. That totaled $15,920 for Mays, $18,156 for Murphy and $17,776 for Jewell.

Reached by IBJ this afternoon, Bill Mays acknowledged complaining about the meeting.

According to the SEC, “the director complained to each of the defendants that he was upset that a special First Indiana board meeting was taking place on Sunday and ruining his scheduled plans for the day.”

Kristen Mays, Murphy and Jewell “then each misappropriated that information,” the SEC alleges. Bill Mays found out about the meeting on a Friday, and the three executed trades later that day. First Indiana’s sale to Milwaukee-based Marshall & Ilsley Corp. was announced before the markets opened the following Monday.

Bill Mays said that at one point the SEC’s inquiry had encompassed the trading by perhaps 100 people who collectively traded less than $1 million in First Indiana stock. He said he was puzzled that investigators took such interest in the case when there are multi-billion dollar frauds to unearth.

“The SEC ought to have better things to do,” he said.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

  2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

  3. It's empowering for this niche community to know that they have an advocate on their side in case things go awry. http://www.youtube.com/watch?v=Lrst9VXVKfE

  4. Apparently the settlement over Angie's List "bundling" charges hasn't stopped the practice! My membership is up for renewal, and I'm on my third email trying to get a "basic" membership rather than the "bundled" version they're trying to charge me for. Frustrating!!

  5. Well....as a vendor to both of these builders I guess I have the right to comment. Davis closed his doors with integrity.He paid me every penny he owed me. Estridge,STILL owes me thousands and thousands of dollars. The last few years of my life have been spent working 2 jobs, paying off the suppliers I used to work on Estridge jobs and just struggling to survive. Shame on you Paul...and shame on you IBJ! Maybe you should have contacted the hundreds of vendors that Paul stiffed. I'm sure your "rises from the ashes" spin on reporting would have contained true stories of real people who have struggled to find work and pay of their debts (something that Paul didn't even attempt to do).

ADVERTISEMENT