In addition, Hibbs, age 40, was ordered to forfeit $1.2 million in cash received from the sale of his Lake Harriet home, 139,600 shares in Rimage Corporation stock, $450,000 in cash from the sale of stock, and a $350,000 personal money judgment. Hibbs already has paid more than $1.1 million to the IRS and more than $200,000 to the State of Minnesota in back taxes, penalties, and interest towards his federal and state tax liabilities.

Hibbs pleaded guilty in August 2001 to three counts of tax evasion, one count of conspiracy, and four counts of insider trading.

During his guilty plea hearing, Hibbs admitted that for calendar years 1995, 1996, and 1997, he intentionally omitted over $2,280,000 of income from his personal income tax returns in order to avoid approximately $720,000 in tax liability. Hibbs admitted that he underreported his income in each year by repeatedly and significantly inflating the cost basis of securities he acquired at relatively little expense and later sold at a substantial profit. In total, Hibbs admitted that he intentionally misreported profits from more than 50 securities transactions to evade federal income tax.

Hibbs also pleaded guilty to insider trading. In 1990, Hibbs joined Hidden Creek Industries, Minneapolis, MN, a private industrial management company. In his role at Hidden Creek, he became an officer or director of Dura Automotive Systems, Inc. (Dura) and Tower Automotive, Inc. (Tower). As an officer and director of those companies, Hibbs had access to material, non-public information about those companies. Hibbs admitted that from 1997 through the present, he unlawfully traded in the stocks of Dura and Tower, and also unlawfully traded in the stocks of companies acquired by Dura and Tower. Hibbs admitted that he traded in the stock of these companies in is own accounts, his parents' accounts, and his in-laws' accounts.

Hibbs also pleaded guilty to conspiracy. Hibbs admitted that between 1997 and 1999 he knowingly and willfully conspired with George Kline and Erich Kline to commit securities and mail fraud through the exchange of inside information. Hibbs admitted that on multiple occasions during that time period, he provided George Kline with material, non-public information obtained by him from Tower and Dura, in knowing breach of both securities laws and his fiduciary duties to the companies. In particular, Hibbs admitted that he provided George Kline with inside information prior to Dura's April 1998 acquisition of Trident, Tower's September 1998 pre-announcement of favorable earnings, and Dura's January 1999 acquisition of Excel. Hibbs admitted that on numerous occasions during the same time period, Erich Kline provided him with material non-public information regarding CyberOptics Corporation that Hibbs then used to purchase and sell CyberOptics to obtain illegal stock profits. Hibbs admitted that he believed George Kline to be the source of the information provided through Erich Kline.

The case is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorneys Hank Shea and Frank Magill, Special Assistant United States Attorney Douglas Hyman, U.S. Securities and Exchange Commission, and former Special Assistant United States Attorney Alison Vander Vort.