Insider trading is charged to 3 in VeriFone takeover

August 21, 1999|By BLOOMBERG NEWS

SAN FRANCISCO -- Three people, including the former husband of a former VeriFone Inc. employee, were charged with insider trading related to Hewlett-Packard Co.'s 1997 acquisition of the electronic payment device maker, the Securities and Exchange Commission said yesterday.

VeriFone corporate marketing employee Amy Goodson, who was not charged by the SEC, told her then-husband, Floyd Goodson, about the planned acquisition in a confidential conversation about the future of her job, regulators said.

Based on the tip, Floyd Goodson's father and a friend of the father's bought VeriFone options the day before the acquisition was announced and sold them immediately afterward at a $209,281 profit when VeriFone's stock price rose 57 percent, the SEC said.

Floyd Goodson, his father James Goodson, and the father's friend, John R. Fiser, now face SEC charges.

Wade Davies, an attorney for the Goodsons, said he does not think they violated any laws or regulations.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.