SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

Litigation Release No. 17154 / September 27, 2001

Civil Action No. 01 CV 8729 (S.D.N.Y.) (filed September 27, 2001)

SEC Files Insider Trading Charges Against Three Tippees of a Former Salomon
Smith Barney Investment Banking Analyst

   The Commission today filed a civil complaint in the United States
   District Court for the Southern District of New York against Brendan
   Sterne, Kent Walker, and Ryan Doersam. The complaint alleges that the
   defendants collectively engaged in repeated acts of insider trading
   involving the securities of nine publicly traded companies over a
   nine-month period, resulting in total illegal profits of $62,436.83.
   According to the complaint, each of the defendants was separately
   approached by Michael A. Petrescu-Comnene ("Petrescu-Comnene"), whom
   each knew from either high school or college, and who then worked as
   an analyst in the investment banking division of Salomon Smith Barney,
   Inc. ("Salomon"). Each defendant agreed to trade securities in his own
   account based on information to be provided by Petrescu-Comnene and,
   in return, agreed to give Petrescu-Comnene half of his trading
   profits. Petrescu-Comnene then tipped each of the defendants with
   material, nonpublic information about proposed mergers or acquisitions
   involving Salomon clients. Each of the defendants knew that
   Petrescu-Comnene worked at Salomon and knew or was reckless in not
   knowing that Petrescu-Comnene had improperly provided them with
   information.

   With respect to Sterne, age 25, the Commission's complaint
   specifically alleges that he received illegal tips and profitably
   traded the securities of eight companies beginning in December 1999.
   Petrescu-Comnene first tipped Sterne prior to the December 20, 1999
   public announcement that MMI Companies, Inc., a Salomon client, would
   be acquired by The St. Paul Companies. Based on this tip, Sterne
   purchased 1500 shares of MMI stock, one business day prior to the
   announcement, and quickly sold his position, making a profit of
   $7,125. Following the MMI transaction, Sterne profitably traded the
   securities of seven other companies after receiving tips from
   Petrescu-Comnene. Sterne made his largest profit by purchasing 20
   Associates First Capital Corp. ("AFS") call options the day before the
   September 6, 2000 announcement that Citigroup Inc. ("Citigroup"),
   Salomon's parent, had agreed to purchase AFS in an all-stock
   transaction valued at $31.1 billion. The public announcement resulted
   in a 38 percent increase in the underlying price of AFS stock and
   resulted in profits to Sterne of $16,125. All told, Sterne's profits