For Immediate Release                       2000-121


   SEC  And U.S. Attorney Charge Former Intel Employee And
                           Others
                    With Insider Trading
                              
     Los Angeles, CA, September 1, 2000 -- The Securities
and Exchange Commission and the United States Attorney for
the Central District of California announced today the
filing of civil and criminal actions against a former Intel
Corporation employee, his cousin and the cousin's business
partner for illegal insider trading.  The defendants traded
in the securities of Ancor Communications Inc., a Minnesota
computer technology company, before the December 7, 1999
public announcement that Ancor was entering into two
significant business transactions with Intel.  The
Commission's complaint alleges that the defendants realized
profits in excess of $232,000.

     According to the Commission's complaint, in the summer
and fall of 1999, within months of first being employed at
Intel, Brian E. Pridgeon, a product marketing engineer,
learned that the company planned to enter into an agreement
with Ancor in which the two companies would collaborate to
develop Intel's Spider chip for use in Ancor's products and
Intel would purchase $14 million in Ancor stock.  Prior to
the public announcement of those transactions, Pridgeon used
that information to purchase 5,600 shares of Ancor stock,
ultimately realizing approximately $137,000 in unlawful
insider trading profits.
     
     The Commission's complaint further alleges that
Pridgeon, of San Jose, California, also tipped his cousin,
Stephon A. Carradine, who, in turn, tipped his business
partner Craig L. Smith.  Smith and Carradine, both of Long
Beach, California, then used the inside information to
purchase $15,000 in options that would have been worthless
unless the price of Ancor's stock rose approximately $12.00
over the following two weeks.  The day of the public
announcement of Ancor's deal with Intel, Smith sold the
options, realizing $95,000 in unlawful insider trading
profits.  Carradine and Smith own a Century 21 - Coastline
Realty office in Long, Beach, California.
     
     Valerie Caproni, the Regional Director for the
Commission's Pacific Regional Office, stated,  "These
actions affirm the Commission's commitment to ferreting out
and prosecuting members of the high-tech community who
engage in insider trading.  These actions should serve as
notice to those in the high-tech industry and elsewhere
that, where appropriate, we will continue to work together
with the criminal authorities to punish those who
participate in insider trading and thereby compromise the
fairness of the securities market."

     "These cases represent the latest in a series of
collaborative efforts between the SEC and this office," said
United States Attorney Alejandro N. Mayorkas.  "Those who
engage in insider trading and any other forms of market
manipulation are put on notice that federal law enforcement
is committed to protecting the integrity of the trading
markets which now impact nearly every American."
     
     The Commission is seeking an injunction against the
defendants from future violations of the antifraud
provisions of the federal securities laws, disgorgement of
their insider trading profits and civil penalties of up to
three times their trading profits.  The criminal action
charges Pridgeon, Smith and Carradine with conspiracy and
two counts of securities fraud, charges which carry a
penalty of up to 25 years in federal prison.
     
     The Commission acknowledges the assistance provided by
the Chicago Board Options Exchange.
     
     For further information, please contact Diana K. Tani,
Assistant Regional Director, Enforcement, SEC at (323) 965-
3991 or Michele Wein Layne, Deputy Assistant Regional
Director, Enforcement, SEC at (323) 965-3850 and Assistant
United States Attorney Paul Watford at (213) 894-2417.



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