UNITED STATES DISTRICT - PDF document

UNITED STATES DISTRICT COURT SOUTHERN
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK J g Bsp?E i: UNITED STATES SECURITIES COMNIISSION Plaintiff, COMPANIA INTERNACIONAL FINANCIER4 Plaintiff, the United States Securities and Exchange § 78j(a)] ("Exchange Act") by Compania International Financiers offshore investment vehicle, and 'Section 10(a) of the Exchange Act prohibits effecting any security registered a national securities exchange, in contravention of during a specific restricted period (usually within five business days) before offering. Rule 105 provides offering of securities for cash pursuant to a registration statement filed under the Securities Act 19331, unlawful for any person cover a short offered securities purchased from underwriter or broker or dealer participating if such short sale occurred during period beginning five business days before the offered securities ending with such pricing; or period beginning with the initial filing of such registration statement ending with tj 242.105. This five business day shorter period shall hereinafter qeriod." Rule 105 prohbits conduct irrespective of the intent of the person selling short. Compania and Rodrig short sales least eighty-five (85) public least $4,776,785.89. least forty-nine these offerings, Compania's illegal trading also lO(a) Exchange Act. Unless enjoined by Rodrig the acts practices alleged herein or similar purport -- and object. Accordingly, the Commission seeks a judgment: (1) permanently enjoining Defendants Compania Rodrig under Sections 21 (d)( 1) 2 1 (e) the Exchange Act [15 U.S.C. 55 78u(d)(l) and 78u(e)] from further violating Rule 105 5 and Section lO(a) of the Exchange Act [15 5 78j(a)]; requiring Defendants disgorge their ill-gotten gains, with prejudgment interest, under OVERVIEW OF RULE Connection With a Public covering a short sale securities obtained in a public offering when the short sale withn the Restricted Period. Rule 105 is directed the public offerings the issuers already have outstanding securities as those being offered. A short sale a security which the seller does which is consummated by the delivery a security borrowed of, the seller." 5 loss on a short sale is determined by the price the security purchased the short i.e., the security purchased to repay lender the borrowed shares originally sold short. Accordingly, a short profitable when the price the security decreases after short sale and by the it was sold short. FACTUAL ALLEGATIONS Overview of Defendants' 105 and Section 10(a) January 2002 through least March 2005, by of the means or interstate commerce the mails, or of a national securities exchange, connection with short sales least eighty-five public offerings securities for cash pursuant a registration statement filed under the Securities 1933 (the Compania used securities purchased from an underwriter participating a public offering conducted commitment basis cover shares during the Restricted Period. the NYSE that day, From July 22 through Compania, under supervision and direction of sold short a total of 787,600 of STX for prices ranging from $19.1653 to $19.85 per After the pricing public offering on July Compania purchased 850,000 shares for $1 per share from one or more of the underwriters participating in In violation and Section 10(a) the Exchange Act, Compania, under the supervision and direction of Rodng, STX stock that in the offering to cover the 787,600 of the shares that it sold short before, the the offering, realizing illegal profits as early January 2002 through least March 2005, Compania Rodrig engaged in similar violations 10(a) the Exchange Act andlor connection with one more public securities offerings the following issuers, whose stock symbols are provided parenthesis: Polycom Inc. (PLCM), Cross Country Healthcare (CCRN), Skin Enterprises Petsmart (PETM), Weight Watchers International Inc. (WT Citigroup Board (ABCO), Corp. (PCR), Axis Capital Holdings Ltd. Novatel Wireless Inc. Nuvelo Inc. Metro-Goldwyn-Mayer Inc. Medicines Co. (MDCO), Vista Care Inc. (VSTA), Yankee Candle Inc. International Speedway Corp. Advanced Semiconductor Engineering Verint Systems Inc. SRA International Inc. (SRX), Standard Motor Products Inc. (SMP), Chicago Bride & Iron Co. (CBI), Endo Pharmaceuticals Holdings Inc. (ENDP), Cache Inc. Safenet Inc. (SFNT), Taiwan Semiconductor Co. (TSM), Ornnivision Pacer International CLAIM FOR RELIEF [Short Selling Connection With a Public of Rule of R

egulation M [17 C.F.R. 5 242.1051 an
egulation M [17 C.F.R. 5 242.1051 and Section 10(a) Exchange Act 1'15 U.S.C. 6 78i(a)l Commission incorporates the allegations in paragraphs though fully set in this paragraph. early as January 2002 through least March 2005, Compania and Rodrig securities purchased underwriters participating cover shares Compania had sold short during the restricted period. Compania and Rodrig purchased the stock cover Compania's short sales securities for made pursuant registration statements filed under the Securities Act were conducted on a firm commitment basis. engaging in foregoing, Compania Rodrig Regulation M [17 C.F.R. tj 242.1051 and, with respect 10(a) [15 U.S.C. tj 78j(a)]. 19. Compania and Rodrig will, unless restrained enjoined, continue the transactions, courses of business alleged Complaint, or in similar transactions, acts, practices business, in violation federal securities laws. PRAYER FOR RELIEF Commission requests that the Court Permanently restraining and enjoining Compania and and their agents, servants, employees, representatives, attorneys, affiliates and all persons during a specific restricted period (usually within five business days) before offering. Rule 105 provides offering of securities for cash pursuant to a registration statement filed under the Securities Act Act 19331, it shall be unlawful for any person cover a short offered securities purchased underwriter or broker or dealer participating if such short sale occurred during period beginning five business days before the offered securities ending with such pricing; or (2) period beginning with the initial filing of such registration statement ending with 242.105. This five business day shorter period shall hereinafter qeriod." Rule 105 conduct irrespective of the intent of the person selling short. 2. Compania and Rodrig short sales least eighty-five (85) public least $4,776,785.89. least forty-nine (49) these offerings, Compania's illegal trading also Exchange Act. 3. Unless enjoined by Rodrig will the acts practices alleged herein or similar purport . --, and object. Accordingly, the Commission seeks a judgment: (1) permanently enjoining Defendants Compania 21 (d)( 1) 2 1 (e) the Exchange Act [15 U.S.C. from further violating Rule 105 C.F.R. and Section of the Exchange Act [15 78j(a)]; (2) requiring Defendants disgorge their ill-gotten gains, with prejudgment interest, under OVERVIEW OF RULE 7. Connection With a Public covering a short sale securities obtained in a public offering when the short sale the Restricted Period. Rule 105 is directed the public offerings the issuers already have outstanding securities as those being offered. 8. A short sale a security which the seller does which is consummated by the delivery a security borrowed the seller." loss on a short sale is determined by the price the security purchased the short the security purchased to repay lender the borrowed shares originally sold short. Accordingly, a short profitable when the price the security decreases after short sale and by the it was sold short. FACTUAL ALLEGATIONS Overview of Defendants' 105 and Section 10(a) 9. January 2002 through least March 2005, by of the means or interstate commerce the mails, or of a national securities exchange, connection with short sales least eighty-five public offerings securities for cash pursuant a registration statement filed under the Securities 1933 (the Compania used securities purchased from an underwriter participating a public offering conducted commitment basis cover shares during the Restricted Period. 10. In connection least forty-nine (49) these eighty-five public securities Compania traded were registered on a national securities exchange. Compania typically its short selling on the of the the public offering offering, the offering price pricing day, and was usually set a discount to last reported sale price of stock on Accordingly, by short selling often sold shares short at prices higher than the price it would shares in the offering. 12. The orders to buy sell the securities involved in these violations were made either directly Rodrig, or a employee trading the direction from Rodrig. all pertinent Rodrig made all major investment behalf of Compania, directly or indirectly authorized trades. 13. Compania's trading connection with eighty-five offerings a profit the amount approximately $4,776,785.89. Example of Defendants' Violations of Rule Section 10(a) 14. The Section 10(a) con

nection with public offering Seagate Te
nection with public offering Seagate Technology (STX). On July public offering of STX common stock cash, conducted on a firm basis pursuant to a registration statement filed was priced $18.75 per share reported sale the NYSE that day, From July 22 through Compania, under supervision and direction of sold short a total of 787,600 of STX for prices ranging from $19.1653 to $19.85 per After the pricing public offering on July Compania purchased 850,000 shares for $1 per share from one or more of the underwriters participating in In violation and Section the Exchange Act, Compania, under the supervision and direction of Rodng, STX stock that in the offering to cover the 787,600 of the shares that it sold short before, the the offering, realizing illegal profits 15. as early January 2002 through least March 2005, Compania Rodrig engaged in similar violations Section 10(a) the Exchange Act andlor connection with one more public securities offerings the following issuers, whose stock symbols are provided parenthesis: Polycom Inc. (PLCM), Cross Country Healthcare (CCRN), Nu Skin Enterprises Petsmart Inc. (PETM), Weight Watchers International Inc. (WT Board (ABCO), Perini Corp. (PCR), Axis Capital Holdings Ltd. Novatel Wireless Inc. Nuvelo Inc. Metro-Goldwyn-Mayer Inc. Medicines Co. (MDCO), Vista Care Inc. (VSTA), Yankee Candle Inc. International Speedway Corp. Advanced Semiconductor Engineering Verint Systems Inc. SRA International Inc. (SRX), Standard Motor Products Inc. (SMP), Chicago Bride Iron Co. (CBI), Pharmaceuticals Holdings Inc. (ENDP), Cache Inc. Safenet Inc. (SFNT), Taiwan Semiconductor Co. (TSM), Ornnivision Technologies Pacer International CLAIM FOR RELIEF [Short Selling Connection With a Public of Rule of Regulation M [17 C.F.R. 10(a) of Exchange Act 16. Commission incorporates the allegations in paragraphs though fully set in this paragraph. 17. early as January 2002 through least March 2005, Compania and securities purchased underwriters participating cover shares Compania had sold short during the restricted period. Compania and Rodrig purchased the stock cover Compania's short sales securities for made pursuant registration statements filed under the Securities Act were conducted on a firm commitment basis. 18. engaging in foregoing, Compania Regulation M [17 C.F.R. 242.1051 and, with respect [15 U.S.C. 19. Rodrig will, unless restrained enjoined, continue the transactions, courses of business alleged Complaint, or in similar transactions, acts, practices business, in violation federal securities PRAYER FOR RELIEF Commission requests that the Court a. Permanently restraining and enjoining Compania and and their agents, servants, employees, representatives, attorneys, affiliates and all persons UNITED STATES DISTRICT SOUTHERN DISTRICT OF NEW YORK g Bsp?E iflty................................................................ X J,Q.g&l !b lSbh..g 1~6'19:
a-UNITED STATES SECURITIES AND EXCHANGE COMNIISSION Plaintiff, COMPLAINT COMPANIA INTERNACIONAL FINANCIER4 S.A. and Defendants. Plaintiff, the United States Securities and Exchange SUMMARY 1. action arises from violations of Rule 105 of Regulation [17 C.F.R. 242.1051 ("Rule Section 1 the Securities Exchange Act of U.S.C. § 78j(a)] ("Exchange Act") by Compania International Financiers S.A. offshore investment vehicle, and Rodrig, a/k/a Rodrig, Yomi .fk~drik 'Section 10(a) Exchange Act prohibits effecting any security registered a national securities exchange, in contravention of rules and regulations as the Commission the public interest or for the protection of 105, under Section 10(a) among other provisions, prohibits covering a short sale with securities certain public offerings the short sale occurs UNITED STATES DISTRICT SOUTHERN DISTRICT OF NEW YORK g Bsp?E iflty................................................................ X J,Q.g&l !b lSbh..g 1~6'19:
a-UNITED STATES SECURITIES AND EXCHANGE COMNIISSION Plaintiff, COMPLAINT COMPANIA INTERNACIONAL FINANCIER4 S.A. and Defendants. Plaintiff, the United States Securities and Exchange SUMMARY 1. action arises from violations of Rule 105 of Regulation [17 C.F.R. 242.1051 ("Rule Section 1 the Securities Exchange Act of U.S.C. § 78j(a)] ("Exchange Act") by Compania International Financiers S.A. offshore investment vehicle, and Rodrig, a/k/a Rodrig, Yomi .fk~drik 'Section 10(a) Exchange Act prohibits effecting any security registered a national securities exchange

, in contravention of rules and regulati
, in contravention of rules and regulations as the Commission the public interest or for the protection of 105, under Section 10(a) among other provisions, prohibits covering a short sale with securities certain public offerings the short sale occurs UNITED STATES DISTRICT SOUTHERN DISTRICT OF NEW YORK g Bsp?E iflty................................................................ X J,Q.g&l !b lSbh..g 1~6'19:
a-UNITED STATES SECURITIES AND EXCHANGE COMNIISSION Plaintiff, COMPLAINT COMPANIA INTERNACIONAL FINANCIER4 S.A. and Defendants. Plaintiff, the United States Securities and Exchange SUMMARY 1. action arises from violations of Rule 105 of Regulation [17 C.F.R. 242.1051 ("Rule Section 1 the Securities Exchange Act of U.S.C. § 78j(a)] ("Exchange Act") by Compania International Financiers S.A. offshore investment vehicle, and Rodrig, a/k/a Rodrig, Yomi .fk~drik 'Section 10(a) Exchange Act prohibits effecting any security registered a national securities exchange, in contravention of rules and regulations as the Commission the public interest or for the protection of 105, under Section 10(a) among other provisions, prohibits covering a short sale with securities certain public offerings the short sale occurs UNITED STATES DISTRICT SOUTHERN DISTRICT OF NEW YORK g Bsp?E iflty................................................................ X J,Q.g&l !b lSbh..g 1~6'19:
a-UNITED STATES SECURITIES AND EXCHANGE COMNIISSION Plaintiff, COMPLAINT COMPANIA INTERNACIONAL FINANCIER4 S.A. and Defendants. Plaintiff, the United States Securities and Exchange SUMMARY 1. action arises from violations of Rule 105 of Regulation [17 C.F.R. 242.1051 ("Rule Section 1 the Securities Exchange Act of U.S.C. § 78j(a)] ("Exchange Act") by Compania International Financiers S.A. offshore investment vehicle, and Rodrig, a/k/a Rodrig, Yomi .fk~drik 'Section 10(a) Exchange Act prohibits effecting any security registered a national securities exchange, in contravention of rules and regulations as the Commission the public interest or for the protection of 105, under Section 10(a) among other provisions, prohibits covering a short sale with securities certain public offerings the short sale occurs during a specific restricted period (usually within five business days) before offering. Rule 105 provides offering of securities for cash pursuant to a registration statement filed under the Securities Act Act 19331, it shall be unlawful for any person cover a short offered securities purchased underwriter or broker or dealer participating if such short sale occurred during period beginning five business days before the offered securities ending with such pricing; or (2) period beginning with the initial filing of such registration statement ending with 242.105. This five business day shorter period shall hereinafter qeriod." Rule 105 conduct irrespective of the intent of the person selling short. 2. Compania and Rodrig short sales least eighty-five (85) public least $4,776,785.89. least forty-nine (49) these offerings, Compania's illegal trading also Exchange Act. 3. Unless enjoined by Rodrig will the acts practices alleged herein or similar purport . --, and object. Accordingly, the Commission seeks a judgment: (1) permanently enjoining Defendants Compania 21 (d)( 1) 2 1 (e) the Exchange Act [15 U.S.C. from further violating Rule 105 C.F.R. and Section of the Exchange Act [15 78j(a)]; (2) requiring Defendants disgorge their ill-gotten gains, with prejudgment interest, under during a specific restricted period (usually within five business days) before offering. Rule 105 provides offering of securities for cash pursuant to a registration statement filed under the Securities Act Act 19331, it shall be unlawful for any person cover a short offered securities purchased underwriter or broker or dealer participating if such short sale occurred during period beginning five business days before the offered securities ending with such pricing; or (2) period beginning with the initial filing of such registration statement ending with 242.105. This five business day shorter period shall hereinafter qeriod." Rule 105 conduct irrespective of the intent of the person selling short. 2. Compania and Rodrig short sales least eighty-five (85) public least $4,776,785.89. least forty-nine (49) these offerings, Compania's illegal trading also Exchange Act. 3. Unless enjoined by Rodrig will the acts practices alleged herein or s

imilar purport . --, and object. Accor
imilar purport . --, and object. Accordingly, the Commission seeks a judgment: (1) permanently enjoining Defendants Compania 21 (d)( 1) 2 1 (e) the Exchange Act [15 U.S.C. from further violating Rule 105 C.F.R. and Section of the Exchange Act [15 78j(a)]; (2) requiring Defendants disgorge their ill-gotten gains, with prejudgment interest, under during a specific restricted period (usually within five business days) before offering. Rule 105 provides offering of securities for cash pursuant to a registration statement filed under the Securities Act Act 19331, it shall be unlawful for any person cover a short offered securities purchased underwriter or broker or dealer participating if such short sale occurred during period beginning five business days before the offered securities ending with such pricing; or (2) period beginning with the initial filing of such registration statement ending with 242.105. This five business day shorter period shall hereinafter qeriod." Rule 105 conduct irrespective of the intent of the person selling short. 2. Compania and Rodrig short sales least eighty-five (85) public least $4,776,785.89. least forty-nine (49) these offerings, Compania's illegal trading also Exchange Act. 3. Unless enjoined by Rodrig will the acts practices alleged herein or similar purport . --, and object. Accordingly, the Commission seeks a judgment: (1) permanently enjoining Defendants Compania 21 (d)( 1) 2 1 (e) the Exchange Act [15 U.S.C. from further violating Rule 105 C.F.R. and Section of the Exchange Act [15 78j(a)]; (2) requiring Defendants disgorge their ill-gotten gains, with prejudgment interest, under during a specific restricted period (usually within five business days) before offering. Rule 105 provides offering of securities for cash pursuant to a registration statement filed under the Securities Act Act 19331, it shall be unlawful for any person cover a short offered securities purchased underwriter or broker or dealer participating if such short sale occurred during period beginning five business days before the offered securities ending with such pricing; or (2) period beginning with the initial filing of such registration statement ending with 242.105. This five business day shorter period shall hereinafter qeriod." Rule 105 conduct irrespective of the intent of the person selling short. 2. Compania and Rodrig short sales least eighty-five (85) public least $4,776,785.89. least forty-nine (49) these offerings, Compania's illegal trading also Exchange Act. 3. Unless enjoined by Rodrig will the acts practices alleged herein or similar purport . --, and object. Accordingly, the Commission seeks a judgment: (1) permanently enjoining Defendants Compania 21 (d)( 1) 2 1 (e) the Exchange Act [15 U.S.C. from further violating Rule 105 C.F.R. and Section of the Exchange Act [15 78j(a)]; (2) requiring Defendants disgorge their ill-gotten gains, with prejudgment interest, under Court's inherent equitable powers powers U.S.C. 5 78u(d)(5)]; and (3) imposing monetary penalties against Defendants under Section the Exchange U.S.C. 5 78u(d)(3)]. AND VENUE 4. This Court has jurisdiction over under Sections 2 1 2 1 (e), and 27 Exchange Act [15 U.S.C. 78u(e) and of the Exchange Act, 1391(d), because some of the issue in this case occurred on the Stock Exchange Defendants conducted the trading issue from securities brokerage accounts located New York which they and control, Defendants are non-United States persons residing outside DEFENDANTS 5. COMPANIA INTERNACIONAL FINANCIERA an offshore investment vehicle founded, owned organized under the International Business Companies Act British Virgin Islands. Compania also in the name of Strategic Market Analysis Back Office Solutions S.A., and Societe Reglements. Compania conducts business from offices London and 6. YOMI RODRIG, a Turkish national residing Geneva. Rodrig owns and controls Compania works as a professional securities trader. Court's inherent equitable powers powers U.S.C. 5 78u(d)(5)]; and (3) imposing monetary penalties against Defendants under Section the Exchange U.S.C. 5 78u(d)(3)]. AND VENUE 4. This Court has jurisdiction over under Sections 2 1 2 1 (e), and 27 Exchange Act [15 U.S.C. 78u(e) and of the Exchange Act, 1391(d), because some of the issue in this case occurred on the Stock Exchange Defendants conducted the trading issue from securities brokerage accounts located New York which they and control, Defendants

are non-United States persons residing
are non-United States persons residing outside DEFENDANTS 5. COMPANIA INTERNACIONAL FINANCIERA an offshore investment vehicle founded, owned organized under the International Business Companies Act British Virgin Islands. Compania also in the name of Strategic Market Analysis Back Office Solutions S.A., and Societe Reglements. Compania conducts business from offices London and 6. YOMI RODRIG, a Turkish national residing Geneva. Rodrig owns and controls Compania works as a professional securities trader. Court's inherent equitable powers powers U.S.C. 5 78u(d)(5)]; and (3) imposing monetary penalties against Defendants under Section the Exchange U.S.C. 5 78u(d)(3)]. AND VENUE 4. This Court has jurisdiction over under Sections 2 1 2 1 (e), and 27 Exchange Act [15 U.S.C. 78u(e) and of the Exchange Act, 1391(d), because some of the issue in this case occurred on the Stock Exchange Defendants conducted the trading issue from securities brokerage accounts located New York which they and control, Defendants are non-United States persons residing outside DEFENDANTS 5. COMPANIA INTERNACIONAL FINANCIERA an offshore investment vehicle founded, owned organized under the International Business Companies Act British Virgin Islands. Compania also in the name of Strategic Market Analysis Back Office Solutions S.A., and Societe Reglements. Compania conducts business from offices London and 6. YOMI RODRIG, a Turkish national residing Geneva. Rodrig owns and controls Compania works as a professional securities trader. Court's inherent equitable powers powers U.S.C. 5 78u(d)(5)]; and (3) imposing monetary penalties against Defendants under Section the Exchange U.S.C. 5 78u(d)(3)]. AND VENUE 4. This Court has jurisdiction over under Sections 2 1 2 1 (e), and 27 Exchange Act [15 U.S.C. 78u(e) and of the Exchange Act, 1391(d), because some of the issue in this case occurred on the Stock Exchange Defendants conducted the trading issue from securities brokerage accounts located New York which they and control, Defendants are non-United States persons residing outside DEFENDANTS 5. COMPANIA INTERNACIONAL FINANCIERA an offshore investment vehicle founded, owned organized under the International Business Companies Act British Virgin Islands. Compania also in the name of Strategic Market Analysis Back Office Solutions S.A., and Societe Reglements. Compania conducts business from offices London and 6. YOMI RODRIG, a Turkish national residing Geneva. Rodrig owns and controls Compania works as a professional securities trader. OVERVIEW OF RULE 7. Connection With a Public covering a short sale securities obtained in a public offering when the short sale the Restricted Period. Rule 105 is directed the public offerings the issuers already have outstanding securities as those being offered. 8. A short sale a security which the seller does which is consummated by the delivery a security borrowed the seller." loss on a short sale is determined by the price the security purchased the short the security purchased to repay lender the borrowed shares originally sold short. Accordingly, a short profitable when the price the security decreases after short sale and by the it was sold short. FACTUAL ALLEGATIONS Overview of Defendants' 105 and Section 10(a) 9. January 2002 through least March 2005, by of the means or interstate commerce the mails, or of a national securities exchange, connection with short sales least eighty-five public offerings securities for cash pursuant a registration statement filed under the Securities 1933 (the Compania used securities purchased from an underwriter participating a public offering conducted commitment basis cover shares during the Restricted Period. OVERVIEW OF RULE 7. Connection With a Public covering a short sale securities obtained in a public offering when the short sale the Restricted Period. Rule 105 is directed the public offerings the issuers already have outstanding securities as those being offered. 8. A short sale a security which the seller does which is consummated by the delivery a security borrowed the seller." loss on a short sale is determined by the price the security purchased the short the security purchased to repay lender the borrowed shares originally sold short. Accordingly, a short profitable when the price the security decreases after short sale and by the it was sold short. FACTUAL ALLEGATIONS Overview of Defendants' 105 and Section 10(a) 9. January 2002 thr

ough least March 2005, by of the means
ough least March 2005, by of the means or interstate commerce the mails, or of a national securities exchange, connection with short sales least eighty-five public offerings securities for cash pursuant a registration statement filed under the Securities 1933 (the Compania used securities purchased from an underwriter participating a public offering conducted commitment basis cover shares during the Restricted Period. 10. In connection least forty-nine (49) these eighty-five public securities Compania traded were registered on a national securities exchange. Compania typically its short selling on the of the the public offering offering, the offering price pricing day, and was usually set a discount to last reported sale price of stock on Accordingly, by short selling often sold shares short at prices higher than the price it would shares in the offering. 12. The orders to buy sell the securities involved in these violations were made either directly Rodrig, or a employee trading the direction from Rodrig. all pertinent Rodrig made all major investment behalf of Compania, directly or indirectly authorized trades. 13. Compania's trading connection with eighty-five offerings a profit the amount approximately $4,776,785.89. Example of Defendants' Violations of Rule Section 10(a) 14. The Section 10(a) connection with public offering Seagate Technology (STX). On July public offering of STX common stock cash, conducted on a firm basis pursuant to a registration statement filed was priced $18.75 per share reported sale 10. In connection least forty-nine (49) these eighty-five public securities Compania traded were registered on a national securities exchange. Compania typically its short selling on the of the the public offering offering, the offering price pricing day, and was usually set a discount to last reported sale price of stock on Accordingly, by short selling often sold shares short at prices higher than the price it would shares in the offering. 12. The orders to buy sell the securities involved in these violations were made either directly Rodrig, or a employee trading the direction from Rodrig. all pertinent Rodrig made all major investment behalf of Compania, directly or indirectly authorized trades. 13. Compania's trading connection with eighty-five offerings a profit the amount approximately $4,776,785.89. Example of Defendants' Violations of Rule Section 10(a) 14. The Section 10(a) connection with public offering Seagate Technology (STX). On July public offering of STX common stock cash, conducted on a firm basis pursuant to a registration statement filed was priced $18.75 per share reported sale 10. In connection least forty-nine (49) these eighty-five public securities Compania traded were registered on a national securities exchange. Compania typically its short selling on the of the the public offering offering, the offering price pricing day, and was usually set a discount to last reported sale price of stock on Accordingly, by short selling often sold shares short at prices higher than the price it would shares in the offering. 12. The orders to buy sell the securities involved in these violations were made either directly Rodrig, or a employee trading the direction from Rodrig. all pertinent Rodrig made all major investment behalf of Compania, directly or indirectly authorized trades. 13. Compania's trading connection with eighty-five offerings a profit the amount approximately $4,776,785.89. Example of Defendants' Violations of Rule Section 10(a) 14. The Section 10(a) connection with public offering Seagate Technology (STX). On July public offering of STX common stock cash, conducted on a firm basis pursuant to a registration statement filed was priced $18.75 per share reported sale 10. In connection least forty-nine (49) these eighty-five public securities Compania traded were registered on a national securities exchange. Compania typically its short selling on the of the the public offering offering, the offering price pricing day, and was usually set a discount to last reported sale price of stock on Accordingly, by short selling often sold shares short at prices higher than the price it would shares in the offering. 12. The orders to buy sell the securities involved in these violations were made either directly Rodrig, or a employee trading the direction from Rodrig. all pertinent Rodrig made all major investment behalf of Compania, directly or indirectly authori

zed trades. 13. Compania's trading co
zed trades. 13. Compania's trading connection with eighty-five offerings a profit the amount approximately $4,776,785.89. Example of Defendants' Violations of Rule Section 10(a) 14. The Section 10(a) connection with public offering Seagate Technology (STX). On July public offering of STX common stock cash, conducted on a firm basis pursuant to a registration statement filed was priced $18.75 per share reported sale CLAIM FOR RELIEF [Short Selling Connection With a Public of Rule of Regulation M [17 C.F.R. 10(a) of Exchange Act 16. Commission incorporates the allegations in paragraphs though fully set in this paragraph. 17. early as January 2002 through least March 2005, Compania and securities purchased underwriters participating cover shares Compania had sold short during the restricted period. Compania and Rodrig purchased the stock cover Compania's short sales securities for made pursuant registration statements filed under the Securities Act were conducted on a firm commitment basis. 18. engaging in foregoing, Compania Regulation M [17 C.F.R. 242.1051 and, with respect [15 U.S.C. 19. Rodrig will, unless restrained enjoined, continue the transactions, courses of business alleged Complaint, or in similar transactions, acts, practices business, in violation federal securities PRAYER FOR RELIEF Commission requests that the Court a. Permanently restraining and enjoining Compania and and their agents, servants, employees, representatives, attorneys, affiliates and all persons CLAIM FOR RELIEF [Short Selling Connection With a Public of Rule of Regulation M [17 C.F.R. 10(a) of Exchange Act 16. Commission incorporates the allegations in paragraphs though fully set in this paragraph. 17. early as January 2002 through least March 2005, Compania and securities purchased underwriters participating cover shares Compania had sold short during the restricted period. Compania and Rodrig purchased the stock cover Compania's short sales securities for made pursuant registration statements filed under the Securities Act were conducted on a firm commitment basis. 18. engaging in foregoing, Compania Regulation M [17 C.F.R. 242.1051 and, with respect [15 U.S.C. 19. Rodrig will, unless restrained enjoined, continue the transactions, courses of business alleged Complaint, or in similar transactions, acts, practices business, in violation federal securities PRAYER FOR RELIEF Commission requests that the Court a. Permanently restraining and enjoining Compania and and their agents, servants, employees, representatives, attorneys, affiliates and all persons CLAIM FOR RELIEF [Short Selling Connection With a Public of Rule of Regulation M [17 C.F.R. 10(a) of Exchange Act 16. Commission incorporates the allegations in paragraphs though fully set in this paragraph. 17. early as January 2002 through least March 2005, Compania and securities purchased underwriters participating cover shares Compania had sold short during the restricted period. Compania and Rodrig purchased the stock cover Compania's short sales securities for made pursuant registration statements filed under the Securities Act were conducted on a firm commitment basis. 18. engaging in foregoing, Compania Regulation M [17 C.F.R. 242.1051 and, with respect [15 U.S.C. 19. Rodrig will, unless restrained enjoined, continue the transactions, courses of business alleged Complaint, or in similar transactions, acts, practices business, in violation federal securities PRAYER FOR RELIEF Commission requests that the Court a. Permanently restraining and enjoining Compania and and their agents, servants, employees, representatives, attorneys, affiliates and all persons CLAIM FOR RELIEF [Short Selling Connection With a Public of Rule of Regulation M [17 C.F.R. 10(a) of Exchange Act 16. Commission incorporates the allegations in paragraphs though fully set in this paragraph. 17. early as January 2002 through least March 2005, Compania and securities purchased underwriters participating cover shares Compania had sold short during the restricted period. Compania and Rodrig purchased the stock cover Compania's short sales securities for made pursuant registration statements filed under the Securities Act were conducted on a firm commitment basis. 18. engaging in foregoing, Compania Regulation M [17 C.F.R. 242.1051 and, with respect [15 U.S.C. 19. Rodrig will, unless restrained enjoined, continue the transactions, courses of business alleged Complain

t, or in similar transactions, acts, pra
t, or in similar transactions, acts, practices business, in violation federal securities PRAYER FOR RELIEF Commission requests that the Court a. Permanently restraining and enjoining Compania and and their agents, servants, employees, representatives, attorneys, affiliates and all persons participation with from violating Rule 105 the Exchange Act; b. Ordering Compania disgorge, with prejudgment interest, all illicit profits the unlawful conduct described above; c. Rodrig to pay civil monetary penalties pursuant to 21(d)(3) of the Exchange Act [15 d. Granting the Commission such other and relief as this just and proper. Respectfully submitted, Stoelting @S-0565) Local ~ounsePlaintiff Lawrence A. West Securities and Exchange Commission World Financial Center David A. Neuman Telephone: (212) 336-0174 Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-401 0 55 1-4450 Facsimile: (202) 772-9246 Email: williamse@sec.gov participation with from violating Rule 105 the Exchange Act; b. Ordering Compania disgorge, with prejudgment interest, all illicit profits the unlawful conduct described above; c. Rodrig to pay civil monetary penalties pursuant to 21(d)(3) of the Exchange Act [15 d. Granting the Commission such other and relief as this just and proper. Respectfully submitted, Stoelting @S-0565) Local ~ounsePlaintiff Lawrence A. West Securities and Exchange Commission World Financial Center David A. Neuman Telephone: (212) 336-0174 Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-401 0 55 1-4450 Facsimile: (202) 772-9246 Email: williamse@sec.gov participation with from violating Rule 105 the Exchange Act; b. Ordering Compania disgorge, with prejudgment interest, all illicit profits the unlawful conduct described above; c. Rodrig to pay civil monetary penalties pursuant to 21(d)(3) of the Exchange Act [15 d. Granting the Commission such other and relief as this just and proper. Respectfully submitted, Stoelting @S-0565) Local ~ounsePlaintiff Lawrence A. West Securities and Exchange Commission World Financial Center David A. Neuman Telephone: (212) 336-0174 Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-401 0 55 1-4450 Facsimile: (202) 772-9246 Email: williamse@sec.gov participation with from violating Rule 105 the Exchange Act; b. Ordering Compania disgorge, with prejudgment interest, all illicit profits the unlawful conduct described above; c. Rodrig to pay civil monetary penalties pursuant to 21(d)(3) of the Exchange Act [15 d. Granting the Commission such other and relief as this just and proper. Respectfully submitted, Stoelting @S-0565) Local ~ounsePlaintiff Lawrence A. West Securities and Exchange Commission World Financial Center David A. Neuman Telephone: (212) 336-0174 Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-401 0 55 1-4450 Facsimile: (202) 772-9246 Email: williamse@sec.gov participation with from violating Rule 105 the Exchange Act; b. Ordering Compania disgorge, with prejudgment interest, all illicit profits the unlawful conduct described above; c. Rodrig to pay civil monetary penalties pursuant to 21(d)(3) of the Exchange Act [15 d. Granting the Commission such other and relief as this just and proper. Respectfully submitted, Stoelting @S-0565) Local ~ounsePlaintiff Lawrence A. West Securities and Exchange Commission World Financial Center David A. Neuman Telephone: (212) 336-0174 Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-401 0 55 1-4450 Facsimile: (202) 772-9246 Email: williamse@sec.gov participation with from violating Rule 105 the Exchange Act; b. Ordering Compania disgorge, with prejudgment interest, all illicit profits the unlawful conduct described above; c. Rodrig to pay civil monetary penalties pursuant to 21(d)(3) of the Exchange Act [15 d. Granting the Commission such other and relief as this just and proper. Respectfully submitted, Stoelting @S-0565) Local ~ounsePlaintiff Lawrence A. West Securities and Exchange Commission World Financial Center David A. Neuman Telephone: (212) 336-0174 Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-401 0 55 1-4450 Facsimile: (202) 772-9246 Email: williamse@sec.go