A New York court has entered a final judgment in the Securitiy Exchange Commission’s favour in its case against Giovanni Piacitelli, a former stockbroker at Schroder & Co. Inc.’s offices in Switzerland. The judgement requires him to pay more than US$350,000, in addition to more than US$11 million in disgorgement and penalties that the SEC has already won in this case.

The SEC alleged that Piacitelli bought 10,000 shares of Elsag Bailey Process Automation N.V. stock while he possessed material non-public information about a pending take-over bid for the firm. After the announcement, Elsag’s stock price increased by about 90%, and Piacitelli’s potential profits were US$164,375.

In September 2000, the court issued a written opinion in this case finding that notwithstanding Piacitelli’s denials, a jury could find that he had inside information based upon circumstantial evidence and the suspicious timing of the Elsag trades.

Without admitting or denying the SEC’s allegations, Piacitelli consented to the entry of a final judgment permanently enjoining him from violating securities laws, disgorgement of US$164,375 in profits, and a civil penalty of US$164,375.