Star money manager David Knall has agreed to pay $123,865 to settle Securities and Exchange Commission charges that he committed insider trading in Galyan's Trading Co. stock three years ago.
Under the settlement, which the SEC announced today, Knall, 63, did not admit or deny wrongdoing.
It was not immediately clear whether Knall will face other sanctions.
Under the settlement, he will pay $55,281 - which represents losses the SEC says Knall avoided by making a trade in his personal account using nonpublic information. The trade occurred immediately before Galyan's announced in mid-2004 that it was being acquired by Dick's Sporting Goods. He also agreed to pay $13,303 in interest and a civil penalty of $55,281.
Knall, who works out of a Stifel Nicolaus office on the north side, is one of the nation's top-producing investment managers. His clients include many of the wealthiest families in central Indiana, including the Simons.
Knall told IBJ this afternoon that settling was an "agonizing decision. You have to understand this did not involve client moneys. It was my own account."
He said he decided to settle because "I just wanted to get it behind me." In stories over the past three years, IBJ reported that Knall was under investigation for insider trading in Galyan's. The stories noted that his son Jamie, who works with him at Stifel Nicolaus, also was under investigation.
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