U.S. SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16394 / December 16, 1999

   SECURITIES AND EXCHANGE COMMISSION v. ALAN BRIAN BOND AND ROBERT I.
   SPRUILL, Civil Action No. 99-12092 (S.D.N.Y.)

   On December 16, 1999, the Securities and Exchange Commission sued New
   York pension fund manager Alan B. Bond for fraudulently receiving over
   $6.9 million in kickbacks from brokerage firms in connection with his
   management of the pension and investment funds of such notable clients
   as the National Basketball Association, the Washington Metropolitan
   Transit Authority and the City University of New York. Bond, Harvard
   educated and a frequent guest on television talk shows, used the
   kickbacks to purchase more than 75 luxury and antique automobiles and
   a large home and beachfront condominium in Florida.

   On the same day, the United States Attorney for the Southern District
   of New York criminally charged Bond, and the second defendant in this
   lawsuit, Robert I. Spruill, for conduct alleged in the Commission's
   complaint.

   The Commission's complaint, filed in the U.S. District Court for the
   Southern District of New York, alleges that, from September 1993
   through November 1998, Bond received over $6.9 million in commission
   kickbacks from three brokerage firms. Bond directed trades to these
   firms through his former money management business, Bond, Procope
   Capital Management. The kickbacks he received were siphoned off the
   investment returns of his clients in the form of mark-ups on principal
   trades in the over-the-counter market. According to the complaint,
   Bond dictated to the brokerage firms the amount of the mark-up on each
   trade and the firms, in turn, kicked back 57-80% of the mark-ups to
   Bond. In most cases, the kickbacks were funneled through dummy
   corporations set up by Spruill, who worked as a registered
   representative at these firms. Bond then instructed the firms not to
   report the mark-ups on his clients' trade confirmations and account
   statements.

   The Commission's complaint further alleges that most of the money in
   this scheme went to finance Bond's extremely lavish personal
   lifestyle. In addition to the 75 cars and the two real estate
   properties in Florida, Bond frequently went on shopping sprees
   spending as much as $200,000 to $470,000 a month. Bond also used some
   of the illicit payments to purchase gratuities for the trustees and
   employees of his pension fund clients.

   As part of its lawsuit, the Commission charged Bond with violating
   Section 17(a) of the Securities Act of 1933, Section 10(b) of the