Man Sentenced for Insider Trading
Posted/updated on: October 30, 2010 at 1:40 pm
TYLER – A 66-year-old Yuba City, California, man has been sentenced to federal prison for insider trading violations in the Eastern District of Texas. Stanley Swanson pleaded guilty Wednesday in Tyler to insider trading of a publicly traded security and was then sentenced to 30 months in federal prison by U.S. District Judge Leonard E. Davis.
According to the information presented in court, Swanson was the CEO and President of Safescript Pharmacies, also known as RTIN Holdings, Inc., a publicly traded company that marketed itself as an electronic prescription technology company. In 1999, Swanson resigned from his positions, and his son, Curtis Swanson, assumed control of RTIN holdings.
In September 2003, the Securities and Exchange Commission began to investigate Curtis Swanson’s fraudulent activities, specifically that Curtis Swanson and others fraudulently inflated RTIN’s publicly-reported revenues and income. Over the following six months, Swanson was aware of the SEC investigations, which was not known to the investing public; sold over 500,000 shares of RTIN stock; and received proceeds of approximately $2,017,277.20. In a separate proceeding, Curtis Swanson pleaded guilty to securities fraud and was sentenced to 10 years in federal prison.
