The U.S. Securities and Exchange Commission today reported that the U.S. District Court for the Southern District of New York has entered a final judgment against Ryan Doersam, a former employee of a Canadian investment bank, based upon charges of insider trading.

Without admitting or denying the allegations of the complaint, Doersam, 24, consented to the entry of the final judgment, which permanently enjoins him from violating the antifraud provisions of U.S. securities laws. The judgement also ordered him to pay US$8,574.89, representing disgorgement of illegal profits and prejudgment interest. However, payment of this amount was waived and a civil penalty was not assessed against Doersam, based upon his demonstrated inability to pay.

The commission also instituted settled administrative proceedings against Doersam, suspending him from associating with any broker or dealer for 12 months.

In its complaint filed on September 27, the SEC alleged that Michael Petrescu-Comnene, who then worked as an analyst in the investment banking division of Salomon Smith Barney Inc., tipped Doersam prior to the March 21, 2000 public announcement that Travelers Property Casualty Corp. would be acquired by Citigroup.

Based on this tip, Doersam purchased 15 Travelers call options on the morning of the announcement. When the merger was announced later that day, Travelers’ stock price increased 21%. Doersam sold his options, resulting in profits of US$7,875.