Dennis Evans Cleared of Insider Trading Charges

A federal jury cleared a Mission Viejo executive of insider trading charges brought by the Securities and Exchange Commission, evidently believing defense arguments that the accusations were trumped up by an ex-wife.

Dennis W. Evans, 38, was exonerated Friday in U.S. District Court in Los Angeles when the jury rejected claims that he had profited from confidential information about a merger between Ultrasystems Inc.--an Irvine firm where Evans was employed as a controller--and Hadson Corp. in Oklahoma City, Okla.

Evans, a friend and his mother-in-law at the time purchased 3,800 shares of Ultrasystems on Oct. 29, 1987--the day before the merger was announced. They made a combined profit of $11,115 when the stock in subsequent days soared by 49% to $8.75 per share.

During the five-day trial, defense attorney J. Michael Brennan argued that Evans had purchased the stock simply because its market price was at an all-time low and not because he was privy to inside information about the merger.