In the Matter of Cady, Roberts & Co.

Robert Gintel (defendant), a broker at Cady, Roberts & Co. (defendant), learned by phone from Curtiss-Wright director J. Cheever Cowdin that the company's board had just approved a dividend cut, before that news reached the public due to a delay in notifying the New York Stock Exchange. Gintel immediately sold Curtiss-Wright stock for his clients to protect them from the anticipated price drop; the Exchange suspended trading once the dividend news became public and later fined Gintel. The SEC brought this proceeding alleging fraud, and the parties proposed a settlement suspending Gintel from the Exchange for 20 days.