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Locals settle First Indiana insider-trading case

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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.
 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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