U.S. v. Holley (D. N.J.); SEC v. Holley, Case No. 3:11-cv-00205 (D. N.J. Filed Jan. 13, 2011). The criminal case names as defendants George H. Holley, the co-founder of Home Diagnostics and his friend Phairot Iamnaita. Each defendant is charged with conspiracy to commit securities fraud. The SEC action names as defendants those two individuals along with Steven Dudas, the personal accountant to Mr. Holley. The complaint alleges violations of Exchange Act Sections 10(b) and 14(e). The cases center on the acquisition of Home Diagnostics, Inc. by Nipro Corporation in a deal announced on February 3, 2010. According to the Commission, Mr. Holley told Messrs. Dudas and Iamnaita that Nipro was about to acquire Home Diagnostics. He then furnished the two men with $121,500 to purchase shares of the company. The two men used a joint brokerage account to acquire shares of the company. When the deal was announced the share price for Home Diagnostics increased by 90% over the closing price the previous day. Messrs. Dudas and Iamnaita liquidated their shares yielding a profit of over $90,000. The charging papers in each case allege that Mr. Holley also tipped others. These cases are in litigation.