Nine Accused of Insider Trading
LOS ANGELES (AP) _ The producer of the movie ``The Cable Guy,″ his brother and seven others have been charged with insider trading by the Securities and Exchange Commission.
In a complaint filed Wednesday in U.S. District Court, the SEC alleged that a group of close friends, family members and associates of Bel-Air lawyer Roger L. Licht made more than $200,000 in illegal profits by trading in the stocks of three East Coast companies in 1993 and 1994.
Roger Licht is the older brother of ``The Cable Guy″ producer Andrew K. Licht, who is also named in the complaint.
Attorneys for the Licht brothers and other defendants denied allegations by the SEC.
The alleged insider trading occurred in the securities of three public firms _ Medco Containment Services Inc. and Synetic Inc., both based in Montvale, N.J., and Leisure Concepts Inc., which is based in New York, the SEC said.
Roger Licht, 44, sits on the board of directors of Synetic and was a director of Medco, which was bought for $6 billion by Merck & Co. in 1993.
According to the complaint, Roger Licht called Andrew Licht in the days before the Medco-Merck merger. Andrew Licht, 40, then allegedly contacted D. Mark Sandelson, a friend of the brothers who bought Medco options the day before the merger was announced.
When Sandelson sold those options, he made a $63,000 profit, the complaint said.
Steven and Lynn Weston settled with the SEC for a total of $40,234. Melnick settled for interest and civil penalties of $20,240, and Schilling settled for $15,082, according to the SEC.