SEC v. Ladislav “Larry” Schvacho, Case No. 1:12-mi-99999-UNA (N.D. Ga.). On July 24, 2012, the SEC announced insider trading charges against Larry Schvacho. Schvacho traded in the common stock of Comsys IT Partners, Inc. (“Comsys”) based on material, non-public information about the acquisition of Comsys revealed to him by Comsys’ then-CEO, Larry L. Enterline, a longtime, close personal friend and business associate. Based on this inside information, Schvacho purchased approximately 72,000 shares of Comsys stock between November 9, 2009 and February 1, 2010, – just weeks before the public announcement of the acquisition and tender offer for Comsys by Manpower, Inc. (“Manpower”). On February 2, 2010, Manpower and Comsys publicly announced the acquisition and tender offer for Comsys, resulting in a 31 % percent increase in the share price of Comsys from its prior day’s close. As a result of his insider trading of Comsys stock, Schvacho obtained illicit profits of approximately $511,580. Schvacho is charged with violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 thereunder. The Commission seeks civil monetary penalties, disgorgement plus prejudgment interest, and injunctive relief.
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