Late last month, the SEC filed an action against Raymond C. Chop and Nicholas F. Chop for insider tradeing related to Serologicals, Inc. Allegedly, the two met with a Serologicals employee on April 23, 2005, and found out that the company was being sold. On the following day, April 24, Raymond purchased 500 shares of Serologicals stock and Nicholas purchased 400 shares.
Prior to the market opening on April 25, it was announced that Serologicals would be acquired by Millipore. The stock purchased by the Chops went up 34%, and Raymond profited $3,785, while Nicholas profited $2,897. Each has agreed to pay disgrorgement in the amount of their profits, plus prejudgment interest, plus a fine equal to their profits. (Essentially the amount they will each pay is double the profits plus a little interest.)