(Adds a comment from attorney for Schlossberg, notes that
lawyer for Nash declined to comment)
By Sarah N. Lynch
WASHINGTON Aug 14 An Atlanta-based accountant
agreed on Thursday to pay a fine to settle a civil
insider-trading case in which U.S. regulators accused him of
trading in and sharing confidential information about a
restaurant stock ahead of a tender offer announcement.
The Securities and Exchange Commission said Donald S. Toth
"disregarded his fiduciary duty" to a client after he bought
stock in O'Charley's Inc, a restaurant company later acquired by
Fidelity National Financial Inc.
The SEC said Toth called his financial advisor and arranged
to buy 5,000 shares of O'Charley's after his client revealed the
impending acquisition during a tax-planning meeting.
Toth also allegedly tipped off two other clients, James A.
Nash and Blair G. Schlossberg. Nash bought 10,000 shares, while
Schlossberg tipped his business partner, Moshe Manoah, and the
two of them jointly bought stock using an account held by
Manoah's wife, the SEC said.
The other three who allegedly traded were also charged by
the SEC on Thursday and agreed to settle their cases.
The SEC said more than $160,000 in illegal profits were
generated by the four men. Together, they will pay more than
$420,000 to settle the charges without admitting or denying
The SEC's case did not say where Toth was employed, but a
Donald S. Toth is listed as an accounting partner in the Atlanta
office of Smith, Adcock and Company.
A woman who answered the telephone at Smith Adcock declined
to comment and abruptly hung up.
Toth declined to comment in an email to Reuters.
Russell Ryan, a partner with King & Spalding who represents
Schlossberg said his client made the "economically rational
decision" to resolve the matter "through an amicable resolution
in which there were no findings or admissions of wrongdoing."
Attorneys for Nash and Moshe Manoah both declined to
"As an accountant, Toth had a duty to keep confidential the
information shared by his client for tax-planning purposes, but
instead he misused it for personal investments and provided the
details to other clients for their misuse," said William Hicks,
the associate director of enforcement of the SEC's Atlanta
(Reporting by Sarah N. Lynch; Editing by Paul Simao and Andre