Securities and Exchange Commission v. John Naylor Clark, Iii, and Russell G. Van Moppes

915 F.2d 439 59 USLW 2223 , Fed. Sec. L. Rep. P 95,501 SECURITIES AND EXCHANGE COMMISSION, Plaintiff-Appellee, v. John Naylor CLARK, III, Defendant-Appellant, and Russell G. Van Moppes, Defendant. No. 89-35486. United States Court of Appeals, Ninth Circuit. Argued and Submitted June 5, 1990. Decided Sept. 24, 1990. David J. Hase, Foley & Lardner, Milwaukee, Wis., for defendant-appellant. Paul Gonson, S.E.C., Washington, D.C., for plaintiff-appellee. Appeal from the United States District Court for the Western District of Washington. Before HALL, THOMPSON and LEAVY, Circuit Judges. CYNTHIA HOLCOMB HALL, Circuit Judge: 1 In an enforcement action brought by the Securities and Exchange Commission ("SEC"), a jury determined that John Naylor Clark, III ("Clark") violated Sec. 10(b) of the Securities and Exchange Act of 1934, 15 U.S.C. Sec. 78j(b) and Rule 10b-5, 17 C.F.R. Sec. 240.10b-5 by misappropriating and using material nonpublic information regarding his employer's plans to acquire another company. The jury also found that Clark's stockbroker, Russell Van Moppes, who had executed Clark's trades and had traded upon Clark's information, had not violated federal securities laws.…