-------------------- BEGINNING OF PAGE #1 ------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 14769 / December 29, 1995 SECURITIES AND EXCHANGE COMMISSION v. EDWARD A. CANTOR, MICHAEL LEVINE AND DAVID P. SCHWARTZ, 94 Civ. 8079 (JGK) NEW YORK -- The Commission announced today that the Honorable John G. Koeltl of the United States District Court for the Southern District of New York signed a final judgment against defendant David P. Schwartz permanently enjoining him from future violations of Section 14(e) of the Securities Exchange Act of 1934 and Rule 14e-3 thereunder, and ordering him to pay $3,063.83 in disgorgement and prejudgment interest, and $14,822.00 as a civil penalty under the Insider Trading and Securities Fraud Enforcement Act of 1988. The judgment was entered on December 14, 1995. Defendant Schwartz consented to the entry of the final judgment without admitting or denying the allegations in the Complaint. In this action, the Commission alleges that, on November 9, 1989, while in possession of material, nonpublic information relating to the tender offer for DeSoto, Inc. announced later that day, defendant Schwartz, at the time an employee of Morgan Stanley & Co. Inc., tipped defendant Edward A. Cantor, who then purchased 35,000 shares of DeSoto, Inc. for a total cost of about $1,443,750. Defendant Cantor previously settled with the Commission without admitting or denying the allegations. Disgorgement and prejudgment interest paid by defendants Cantor and Schwartz is being held by the Court for the benefit of persons who submit valid claims within one year after the date of entry of the final judgments. The Commission intends to petition the Court to appoint a special claims master to develop a distribution plan. The litigation is pending against defendant Michael Levine. For further information, see Litigation Release Nos. 14329 (November 9, 1994) and 14678 (October 4, 1995). The Commission announced today that the Honorable John G. Koeltl of the United States District Court for the Southern District of New York signed a final judgment against defendant David P. Schwartz permanently enjoining him from future violations of Section 14(e) of the Securities Exchange Act of 1934 and Rule 14e-3 thereunder, and ordering him to pay $3,063.83 in disgorgement and prejudgment interest, and $14,822.00 as a civil penalty under the Insider Trading and Securities Fraud Enforcement Act of 1988. The judgment was entered on December 14, 1995. Defendant Schwartz consented to the entry of the final judgment without admitting or denying the allegations in the Complaint. In this action, the Commission alleges that, on November 9, 1989, while in possession of material, nonpublic information relating to the tender offer for DeSoto, Inc. announced later that day, defendant Schwartz, at the time an employee of Morgan Stanley & Co. Inc., tipped defendant Edward A. Cantor, who then purchased 35,000 shares of DeSoto, Inc. for a total cost of about $1,443,750. Defendant Cantor previously settled with the Commission without admitting or denying the allegations. Disgorgement and prejudgment interest paid by defendants Cantor and Schwartz is being held by the Court for the benefit of persons who submit valid claims within one year after the date of -------------------- BEGINNING OF PAGE #2 ------------------- entry of the final judgments. The Commission intends to petition the Court to appoint a special claims master to develop a distribution plan. The litigation is pending against defendant Michael Levine. For further information, see Litigation Release Nos. 14329 (November 9, 1994) and 14678 (October 4, 1995).