U.S. Securities and Exchange Commission

Litigation Release No. 17599 / July 3, 2002

, Civil Action No. 02C 4618 (N.D. Ill.)(filed June 28, 2002)

Former Mercury Finance Employee Settles Insider Trading Action

   On June 28, 2002, the Commission filed a Complaint in the U.S.
   District Court for the Northern District of Illinois, alleging that
   Janice Loef, a resident of Wheeling, Illinois and former employee of
   Mercury Finance Co. (Mercury), avoided losses of approximately
   $280,000 by selling Mercury common stock shortly before Mercury
   disclosed the existence of massive accounting irregularities. On July
   2, 2002, Judge Charles P. Kocoras issued an order enjoining her from
   violating Section 17(a) of the Securities Act of 1933, and Section
   10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
   thereunder, ordering her to disgorge $278,993.70 plus pre-judgment
   interest. All but $160,000 of the disgorgement was waived and
   penalties were not imposed, based on Loef's sworn representations in
   her statement of financial condition. Loef consented to the order,
   without admitting or denying the Commission's allegations,

   The Complaint alleges that Mercury, a prominent sub-prime finance
   company, disclosed on January 29, 1997, that its reported net earnings
   for 1995 and 1996 had been overstated by more than $80 million. In
   reaction to that announcement, the price of Mercury's common stock
   plummeted by 89%. According to the Complaint, Loef sold a total of
   20,799 shares of Mercury common stock on January 27 and 28, 1997,
   avoiding losses of $278,993.70. The Complaint further alleges that, at
   the time Loef sold her shares, she was generally aware that Mercury's
   headquarters were in a crisis atmosphere, that Mercury's Principal
   Accounting Officer was missing, and that Mercury's outside auditors
   were at Mercury's headquarters questioning personnel.

   The Commission thanks the U.S. Attorney for the Northern District of
   Illinois for its cooperation in this matter.

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Modified 07/03/2002