The SEC's complaint, filed in the U.S. District Court for the Western District of Tennessee, alleges that Lloyd Schuman, of Cordova, Tennessee, learned that his employer, Verso Corporation, had confidential plans to acquire privately-held NewPage Holdings Inc. According to the SEC's Complaint, Schuman purchased Verso shares before Verso publicly announced the acquisition. Schuman also allegedly tipped a relative, who also purchased Verso shares before the public announcement. Immediately after the announcement, Schuman sold all of his Verso shares realizing more than $107,000 in profits. Schuman's relative also sold his Verso shares, realizing more than $2,500 in profits.

The SEC further alleges that Schuman also engaged in insider trading based on tips that he received from his close friend, Dane Janes, of McKinney, Texas. Janes worked for Ashford Hospitality Trust and allegedly obtained confidential information through his employer about Ashford Hospitality Trust and Ashford Hospitality Prime, including plans to issue more shares and a quarterly earnings release. According to the SEC's complaint, Janes tipped Schuman with this information before it became public. Schuman allegedly traded based on Janes's tips, avoiding $10,478 in losses and realizing profits of $4,672.

Without admitting or denying the allegations in the SEC's complaint, Schuman and Janes have consented to a final judgment permanently enjoining them from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment orders Schuman to pay $122,574 in disgorgement, $21,341 in prejudgment interest, and a civil penalty of $125,134. The final judgment further orders Janes to pay a civil penalty of $15,150.