(December 7 – 17:45 ET) – The Securities and Exchange Commission has brought and settled charges against a former securities analyst for illegal insider trading.

Brett Henderson, formerly an analyst in the Investment Banking/Corporate Finance division of Morgan Stanley Dean Witter’s Menlo Park, Ca. office, consented to an order barring him from associating with any broker or dealer, without admitting or denying the commission’s findings.

The commission alleged that beginning in September 1998 and ending in July 1999, Henderson repeatedly tipped his long-time friend, Richard Randall, with material, non-public information that he had obtained through his position at Morgan Stanley. Henderson and Randall used the information to make trades using Randall’s online brokerage account. The SEC says Henderson and Randall generated profits of approximately US$54,000 by their illegal trading.

The SEC said that Henderson and Randall illegally traded in the stock or options of Broadcom Corp., Netscape Communications Corp., I2 Technologies Inc., Manugistics Group Inc., Xylan Corp., Broadcast.com Inc., Abacus Direct Corporation, Sequent Computer Systems Inc., and Egghead.com, Inc.

Henderson also consented to a court order permanently enjoining him from future violations of securities laws.
-IE Staff