Exec’s husband charged by SEC

first_imgGary Melton, 54, agreed to pay about $31,000 to settle the fraud charges, without admitting or denying any wrongdoing, the SEC said. Gary Melton’s attorney, Andrew Holmes, said his client was happy the case was over and stressed that his client’s wife never gave him any information. “This was him doing something he shouldn’t have done, actually directly against her instructions,” Holmes said. “He misappropriated information from her. It was certainly not her idea to do this.”160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! THOUSAND OAKS – The Securities and Exchange Commission said Monday it filed securities fraud charges against the husband of a top executive at biotechnology giant Amgen Inc., accusing the man of insider trading in the stock of another company, Abgenix Inc. The SEC complaint alleges Gary K. Melton of Newbury Park misappropriated confidential information from his wife, Amgen’s vice president of strategic sourcing and procurement, when he bought stock days before Amgen’s acquisition of Abgenix was made public. The SEC did not name Melton’s wife. She is identified in business publications as Farryn Melton. According to the complaint, which was filed in U.S. District Court in Los Angeles, Gary Melton first told his wife in November 2005 that he might buy some Abgenix stock after seeing positive results from a study of an antibody jointly developed by Amgen and Abgenix. His wife said nothing, the SEC said. Still, a month later, having learned Amgen was preparing to announce its acquisition of Abgenix, the Amgen executive warned her husband not to buy any Abgenix stock, careful not to specify why, the SEC said. Her husband, however, went ahead and purchased 2,050 shares of Abgenix stock between Dec. 8 and Dec. 13, 2005, the SEC said. The next day, Amgen announced it agreed to buy Abgenix for $22.50 per share, a 54 percent premium on Abgenix’s closing stock price that day. Gary Melton reaped $15,252 from his trades, the SEC said. last_img read more