SEC fines former CFO of American Commercial Lines

Back to TopCommentsE-mailPrintBookmark and Share
On The Beat Industry News In Brief

Christopher A. Black, a former investment banker in Indianapolis and former chief financial officer of Jeffersonville-based river barge transportation firm American Commercial Lines Inc., has agreed to pay a $25,000 fine to settle a Securities and Exchange Commission investigation of his improper disclosure of company earnings data.

American Commercial Lines is publicly traded on NASDAQ under the symbol ACLI. According to the SEC’s complaint, on June 11, 2007, the company issued a press release projecting second-quarter earnings in line with the previous quarter’s 20 cents a share. But on June 16, according to the SEC, Black sent an e-mail from his home to eight company analysts. The e-mail warned that earnings “will likely be in the neighborhood of about a dime below that of first quarter.” Black failed to simultaneously disclose this revised guidance to outside investors.

According to the SEC, Black’s selective disclosure triggered a drop in American Commercial Lines’ stock price from $27.13 to $24.50 and a corresponding 300-percent increase in trading volume. The SEC’s settlement says Black acted alone and outside the company’s controls against improper disclosures. American Commercial Lines shared its revised earnings figures with common investors in an 8-K statement on June 18, 2007.

“We are pleased that the SEC has recognized the company’s emphasis on corporate compliance and its strong commitment to a level playing field for all investors,” said American Commercial Lines CEO Michael Ryan in a statement.

According to the company’s most recent proxy statement, filed in April, Black resigned from American Commercial Lines March 1, 2008, and remained as a consultant until April 30, 2008.

Black, 46, a longtime Indiana banker, has worked for locally based investment banking firm Periculum Capital Corp., served as vice president and treasurer of Lafayette-based truck trailer-maker Wabash National Corp., and led Indiana corporate lending divisions for both US Bank and SunTrust Bank. He did not respond to IBJ’s request for comment.


Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. The $104K to CRC would go toward debts service on $486M of existing debt they already have from other things outside this project. Keystone buys the bonds for 3.8M from CRC, and CRC in turn pays for the parking and site work, and some time later CRC buys them back (with interest) from the projected annual property tax revenue from the entire TIF district (est. $415K / yr. from just this property, plus more from all the other property in the TIF district), which in theory would be about a 10-year term, give-or-take. CRC is basically betting on the future, that property values will increase, driving up the tax revenue to the limit of the annual increase cap on commercial property (I think that's 3%). It should be noted that Keystone can't print money (unlike the Federal Treasury) so commercial property tax can only come from consumers, in this case the apartment renters and consumers of the goods and services offered by the ground floor retailers, and employees in the form of lower non-mandatory compensation items, such as bonuses, benefits, 401K match, etc.

  2. $3B would hurt Lilly's bottom line if there were no insurance or Indemnity Agreement, but there is no way that large an award will be upheld on appeal. What's surprising is that the trial judge refused to reduce it. She must have thought there was evidence of a flagrant, unconscionable coverup and wanted to send a message.

  3. As a self-employed individual, I always saw outrageous price increases every year in a health insurance plan with preexisting condition costs -- something most employed groups never had to worry about. With spouse, I saw ALL Indiana "free market answer" plans' premiums raise 25%-45% each year.

  4. It's not who you chose to build it's how they build it. Architects and engineers decide how and what to use to build. builders just do the work. Architects & engineers still think the tarp over the escalators out at airport will hold for third time when it snows, ice storms.

  5. http://www.abcactionnews.com/news/duke-energy-customers-angry-about-money-for-nothing