17 January 2005 – LAWFUEL – The Law News Network – The United States Attorney for the Northern District of California announced that
former Bowne Business Solutions employee Min T. Ma pled guilty today to two counts
of insider trading. Mr. Ma, of San Francisco, was arraigned on a criminal
information on December 14, 2004.
According to the plea agreement, Mr. Ma, 28, admitted having misappropriated
nonpublic information that he obtained during his employment at Bowne, while
performing a desktop publishing contract for Merrill Lynch. Specifically, Mr. Ma
admitted he had learned that SangStat Medical Corporation and Applied Molecular Evolution, Inc. were the potential targets of mergers with other publicly-traded corporations. He then used this information to purchase 8,800 shares of SangStat and 10,730 shares of Applied Molecular between June and August 2003.
After the mergers were publicly announced, Mr. Ma sold the 8,800 shares of SangStat stock for
a net gain of $78,123 and the 10,730 shares of Applied Molecular stock for a net
gain of $119,135. Mr. Ma agreed to pay restitution in the full amount of his
improper gain in the amount of $197,259.
Mr. Ma is scheduled to be sentenced by U.S. District Judge Jeffrey S. White on
April 21, 2005. The maximum statutory penalty for insider trading is 20 years, a
fine of $5,000,000, and restitution. Any sentence following conviction would be
advised by the Federal Sentencing Guidelines, which take into account a number of
factors, and would be imposed at the discretion of the court.
This prosecution was the result of an investigation by the FBI and U.S. Attorney’s
Office with assistance from the SEC. Anne-Christine Massullo and Hartley M.K. West
are the Assistant U.S. Attorneys prosecuting the case.