On Tuesday, the SEC brought an enforcement action against James D. Zeglis and Gautum Gupta, Lance D. McKee and Jim W. Dixon alleging insider trading in the securities of Georgia-Pacific Corporation. The SEC alleged that Zeglis obtained material nonpublic information from his brother, a member of Georgia-Pacific's board of directors, and tipped Gupta and Dixon three days before the public announcement that Georgia-Pacific had agreed to be acquired by Koch Industries, Inc. Gupta and Dixon both allegedly purchased Georgia-Pacific securities, and Gupta allegedly tipped McKee.

Gupta and McKee allegedly realized profits of $689,401 and $7,157.60, respectively, and Dixon realized a profit of $116,000 from the sale of Georgia-Pacific options.

All pretty standard stuff but wait... what's this information coming out of today's Atlanta Journal-Constitution from James Zeglis' attorney?:

James Zeglis' attorney, Kevin M. Flynn, said his client died three weeks ago.

"Of course if [the SEC] had called me, I would have told them that Mr. Zeglis passed away," Flynn said. "Jim denied any wrongdoing. I had a meeting with the SEC several months ago and told them I didn't think that they had a case against us. Maybe Mr. Zeglis gets the last laugh on that."

Apparently not willing to give an inch here, the SEC’s Atlanta regional director reportedly stated that the SEC was unaware of Zeglis’ death but could still pursue his assets.

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