Ex-Supercuts Exec Accused of Insider Trades

The Securities and Exchange Commission said it filed insider trading charges against the former chairman of Supercuts Inc., a San Francisco-based hair salon chain that has since merged with Minneapolis-based Regis Corp. David Lipson, 58, a Chicago merchant banker, could face nearly $2 million in penalties as a result of the alleged illegal trades, an agency official said. In its civil complaint filed in U.S. District Court in Illinois, the SEC accused Lipson of selling 365,000 Supercuts common shares in March and April 1995 at prices between $9.31 and $9.50 while knowing the company would later report disappointing financial results. By selling his shares in advance of any public announcement, the SEC said Lipson avoided losses of about $621,875. Lipson said he will vigorously defend himself against the charges, which he called “unwarranted and unsubstantiated.”