|FOR IMMEDIATE RELEASE||CONTACT: DAVILYN WALSTON|
|WEDNESDAY, OCTOBER 27, 2010||PUBLIC INFORMATION OFFICER|
|HTTP://WWW.USDOJ.GOV/USAO/txe||DIRECT: (409) 839-2538 CELL: (409) 553-9881|
FORMER INTERNET EXECUTIVE SENTENCED FOR INSIDER TRADING
IN THE EASTERN DISTRICT OF TEXAS
TYLER, Texas – A 66-year-old Yuba City, CA man has been sentenced to federal prison for insider trading violations in the Eastern District of Texas announced U.S. Attorney John M. Bales today.
Stanley Swanson pleaded guilty today 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 and 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.
This case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Wesley D. Rivers and Arnold Spencer.
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