An order has been issued granting the application of the Pacific Exchange to strike from listing and registration The Options Clearing Corporation, call and put option contracts relating to certain underlying securities. An order has been issued granting the application of Premier Capital Trust I to withdraw its Cumulative Trust Preferred Securities from listing and registration on the American Stock Exchange. The investment programs were scams, the instruments themselves bogus. Instead of using the money as promised, the promoters of the scheme misappropriated the investors' funds for their own benefit, transferring portions of the money to at least one bank account under the control of the El Hage defendants. After their failure to respond, notwithstanding their foreign location, the Court asserted personal jurisdiction over these defendants based on their conduct in the U.S. and the impact of that conduct on U.S. citizens.
Litigation continues as to the remaining defendants and relief defendants.
Dow gave the inside information to Thifault, who bought stock or call options on the stock of MCI Communications Corp. and Southern New England Telecommunications Corp. in advance of three announcements involving these companies from October 1997 through January 1998. The judgment did not impose additional amounts as civil penalties based on Thifault's demonstrated inability to pay. Dow, Cochrane, and Thifault previously pled guilty to criminal charges of insider trading. Cochrane and Thifault have not yet been sentenced. He is now being held awaiting extradition.