Carl E. Binette and Peter E. Talbot

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22029 / July 6 , 2011

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS ENTERED AMENDED FINAL JUDGMENT OF DISGORGEMENT, PREJUDGMENT INTEREST, AND CIVIL PENALTIES AGAINST DEFENDANTS CARL E. BINETTE AND PETER E. TALBOT.

SEC v. Carl E. Binette and Peter E. Talbot, Case No. 3:09-cv-30107-MAP (D. Mass.)

The Securities and Exchange Commission announced on July 5, 2011, that the United States District Court for the District of Massachusetts, upon motion by the Commission, entered an amended final judgment against the defendants Carl E. Binette and Peter E. Talbot finding them jointly and severally liable for a $615,000 disgorgement, plus prejudgment interest of $76,235.28, for a total payment of $691,235.28, and ordering Binette and Talbot to each pay a $1,845,000 civil money penalty.

On July 13, 2009, the Commission filed a civil injunctive complaint alleging Binette's and Talbot's insider trading in Safeco Corp. securities violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Binette and Talbot each consented to the entry of a judgment without admitting or denying the allegations in the Commission's complaint. Among other things, the judgments enjoined Binette and Talbot, respectively, from committing or aiding and abetting future violations of the above securities law provisions.

On October 14, 2010, the United States Attorney's office for the District of Massachusetts announced that Binette and Talbot were charged in a seven-count indictment with conspiracy and securities fraud related to their insider trading in Safeco. Binette was also charged with obstruction of justice for making false statements to the Commission during its attempts to investigate that scheme. U.S. v. Talbot et al., Criminal Action No. 3:10-cr-30036-MAP (D. Mass.) (Ponser, J.).

For additional information, see LR-21133 (July 15, 2009) and LR-21698 (October 19, 2010).