U.S. Securities and Exchange Commission

Litigation Release No. 18334 / September 9, 2003

, Civil Action No. 99-12092 (S.D.N.Y.)

, Crim. Case No. 99 CR 1239 (S.D.N.Y.)

Commission Settles With Former Registered Representative Robert I. Spruill

   The Securities and Exchange Commission announced today that it settled
   fraud charges against former registered representative Robert I.
   Spruill. The Commission filed a complaint against Spruill on December
   16, 1999, alleging that he participated in a commission kickback
   scheme perpetrated by Alan Brian Bond, the then principal of a
   registered investment adviser. The Commission's complaint alleged that
   Bond received over $6.9 million in commission kickbacks from three
   brokerage firms with which Spruill was associated. The Commission's
   action against Bond is continuing.

   Spruill, without admitting or denying the Commission's allegations,
   consented to the entry of a judgment permanently enjoining him from
   future violations of the antifraud provisions of the federal
   securities laws, specifically Section 10(b) of the Securities Exchange
   Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and (2) of
   the Investment Advisers Act of 1940. The judgment also orders Spruill
   to pay disgorgement and civil penalties in amounts to be determined at
   a later date.

   The Commission also instituted and simultaneously settled an
   administrative proceeding against Spruill. Spruill, without admitting
   or denying the Commission's findings, consented to an order barring
   himfrom association with any broker or dealer. The order was based on
   the entry of the permanent injunction in the related civil action
   against Spruill.

   In a related criminal action, Spruill pled guilty in the U.S. District
   Court for the Southern District of New York on May 31, 2000 to one
   count of conspiracy and one count of commercial bribery relating to
   the kickback scheme. On May 6, 2003, Spruill was sentenced, based on
   his guilty plea, to a prison term of four months, and, on July 3,
   2003, Spruill was ordered to pay $5.8 million in restitution to the
   victims of the scheme.

   For additional information, see (June 6, 2003), (Mar. 6, 2003), (June
   12, 2002), (Dec. 12, 2001), (Aug. 10, 2001), and (Dec. 16, 1999).

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