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Getting the "Last Laugh" on the SEC, the Hard Way

Bruce Carton | September 16, 2008

On Tuesday, the SEC brought an enforcement action against James D. Zeglis and Gautum Gupta, Lance D. McKee and Jim W. Dixon alleging insider trading in the securities of Georgia-Pacific Corporation. The SEC alleged that Zeglis obtained material nonpublic information from his brother, a member of Georgia-Pacific's board of directors, and tipped Gupta and Dixon three days before the public announcement that Georgia-Pacific had agreed to be acquired by Koch Industries, Inc. Gupta and Dixon both allegedly purchased Georgia-Pacific securities, and Gupta allegedly tipped McKee.

Gupta and McKee allegedly realized profits of $689,401 and $7,157.60, respectively, and Dixon realized a profit of $116,000 from the sale of Georgia-Pacific options.

All pretty standard stuff but wait... what's this information coming out of today's Atlanta Journal-Constitution from James Zeglis'...

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