Thursday, April 24, 2003 4:12:46 PM
Below is a copy of an email from WHB to Gary (Sylvia Gee's brother) and Jamie (one of Sylvia's best friends).
Gary and Jamie: Trading stock with material non-public information (NPI) (without permission) is a serious offense. In the case of AMJC, the NPI was a conspiracy to defraud honest AMJC-holders (Class 1). The fact that I (while unaware of the NPI) recommended the stock to you did not give you permission to participate in a fraud against Class 1.
The right thing for both of you to do now is to return the stock to the company. Don't even think about asking for your money back!
Such an act of contrition would NOT legally release you from further liability to Class 1. However, a Court might consider such a gesture to be a mitigating factor.
What in the world were you thinking about? I don't even want to hear your answers!
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