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U.S. Securities and Exchange Commission


Litigation Release No. 20259 / August 29, 2007

SEC v. Roger D. Blackwell et al, U.S. District Court for the Southern District of Ohio No.03-CV-63

SEC Settles With Arnold L. Jack and Blackjack Enterprises for Illegal Insider Trading in Worthington Foods, Inc. Stock

On August 29, 2007, the United States District Court for the Southern District of Ohio entered a Final Judgment against Defendants Arnold L. Jack, a resident of Columbus, Ohio, and Black-Jack Enterprises, an Ohio partnership owned by Jack and co-defendant Roger D. Blackwell, for illegal insider trading in the stock of Worthington Foods, Inc. The Court's Judgment enjoined Jack and Black-Jack from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and ordered Jack to pay a civil penalty in the amount of $31,146.35. Jack and Black-Jack settled the Commission's claims without admitting or denying the allegations of the Complaint.

The Complaint alleges that Defendants Jack and Black-Jack committed illegal insider trading when they traded Worthington Foods, Inc. ("Worthington") stock after they were tipped by Blackwell about the Kellogg Company's 1999 acquisition of Worthington. The Complaint further alleged that Arnold L. Jack has been Roger Blackwell's close friend, business partner and attorney for about 30 years. Blackwell has separately agreed to pay the full disgorgement and prejudgment interest attributable, to Jack and Black-Jack. The illegal profits attributable to Jack and Black-Jack total, respectively, $31,146.35 and $26,884.74.

For more information, see Litigation Release No. 17944, January 21, 2003 and Litigation Release No. 20130, May 25, 2007, Litigation Release No. 20245, August 16, 2007.



Modified: 08/29/2007