A former
Nothern sued the agency already, in February, asking a judge to order the Treasury to allow him to depose five of their officials.
“We’re disappointed that the Treasury department seems to wish to avoid disclosing embarrassing information that we believe is critical to Steve Nothern’s defense,” said his attorney John Shope, of
The case against Nothern stems from an announcement on Oct. 31, 2001, when the Treasury said it would no longer issue 30-year bonds. The Treasury held a 9 a.m. press conference but said that the information would be embargoed until 10 a.m.
Peter Davis, a consultant whose clients included MFS, was at that press conference but left 30 minutes early to call clients with the news. Davis settled with the SEC in 2003, agreeing to pay 2003.
The Commission then brought civil charges against Nothern and a
Nothern says that not only had Davis left a voice mail message for him at around 9:40 that day, but a broker called at 9:30 to say there were rumors the Treasury would stop issuing 30-year bonds. Then, when he saw an announcement on the Treasury’s website before 10 a.m., he began tracking the price of the bonds. Seeing them rising, he decided to buy some, not knowing about the embargo.
According to Nothern’s lawsuit, the Treasury said it has 637 pages documenting what it did that day but that it won’t release 272 of those pages. He also wants the Treasury to release a computer disc that will show when the Treasury posted the news on its website.
“Treasury has encouraged the SEC’s prosecution of this action as a means of deflecting criticism from its many mistakes and misjudgments relating to the Oct. 31, 2001 announcement,” Nothern’s lawsuit states. “Because Treasury’s interest in placing all the blame for Oct. 31, 2001 on private parties like Nothern, it has an incentive to deny him the testimony and other information he needs to defend himself.”