Horton (D) was a director of CBI Industries (P). D was also a co-trustee of a two-family trusts set up by his mother for the benefit of D's two sons. The original assets of the trust were P stock. In 1980, D sold 3000 shares of P stock from his own account. Within six months he then purchased 2000 shares of stock at a lower price for the trust accounts of his sons. The difference in the price was $25,000. The issue was whether D had violated 16(b). The trial court ruled that he did.

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