Almanac

News - April 6, 2011

Investment consultant fined $332,000

by Dave Boyce

Mark Duffell, a former consultant for the Menlo Park-based private investment firm Accel-KKR LLC, agreed to penalties of $332,000 in connection with charges of insider trading, according to the Securities and Exchange Commission.

In March 2009, while representing Accel-KKR, Mr. Duffell bought 65,000 shares of the Silicon Valley software company SumTotal Systems after participating a few days earlier in discussions with SumTotal about Accel-KKR's acquisition of the company, the SEC said.

In April 2009, after a public announcement about the signing of a preliminary merger agreement between the two companies, the value of Mr. Duffell's shares jumped 188 percent and yielded him a profit of $162,500, the SEC said.

"By profiting from his knowledge of the very acquisition he was discussing, Mr. Duffell violated the duty of trust he owed his private investment firm client and ran afoul of the federal securities laws," said Marc J. Fagel, director of the SEC's San Francisco regional office, in a March 24 announcement.

While not admitting or denying the SEC's allegations, Mr. Duffell agreed to pay $332,163 in penalties, including $162,500 in illegal profits, $7,163 in interest, and a civil penalty of $162,500, the SEC said.

Mr. Duffell is a graduate with honors from Kingston University in London and has held several executive positions at Epicor Software Corp. in Irvine, and at Frame Technology, according to a profile by Bloomberg Businessweek.

Comments

There are no comments yet for this post

Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: * Not sure?

Choose a category: *

Since this is the first comment on this story a new topic will also be started in Town Square! Please choose a category that best describes this story.

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields